Natural Gas Forecast August 28, 2015, Technical Analysis

Christopher Lewis

Natural gas markets as you can see fell quite a bit during the session on Thursday but found enough support at the $2.65 level to turn things back around and form a bit of a hammer. The hammer of course is a very bullish sign so we feel that a break above the top of the candle, or better yet, above the top of the shooting star from the Wednesday session, would be a nice buying opportunity. We no interest in selling this market now, at least not until we break down below the bottom of the hammer from the session as it would show significant buildup in momentum.

The meantime, we feel that the most likely move will be a break above the top of the candle and a return to the inner parts of the overall consolidation. The consolidation runs all the way to the $2.95 level though, so we could have quite a ways to go. With that, the market could make a countertrend move, as we continue to simply bounce around. It comes down to whether or not you are comfortable going against the longer-term trend, but there could be a potential buying opportunity above the $2.73 handle. There is a lot of noise above though, so quite frankly it would be massively choppy all the way up there.

It is always going to be safer to short this market right now, so a rally that show signs of resistance would be a nice opportunity to start shorting yet again. That’s actually the trade we prefer, but we realize that the bounce from this general vicinity has been relatively reliable lately. If we did break down below the bottom of the candle for the Thursday session, it would show that we are breaking down yet again, as we should then head to the $2.50 level. Ultimately, we think that natural gas will continue to be soft for the foreseeable future, as there has been more and more natural gas found in both the United States and Canada as drilling techniques improve.


Natural Gas Forecast August 28, 2015, Technical Analysis

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.