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Natural Gas Price Forecast August 21, 2017, Technical Analysis

By:
Christopher Lewis
Updated: Aug 19, 2017, 05:00 UTC

Natural gas markets continue to be choppy, as Friday saw the sellers come back in. As we approached the $2.88 level, we saw a bit of buying, but given

Natural gas daily chart, August 21, 2017

Natural gas markets continue to be choppy, as Friday saw the sellers come back in. As we approached the $2.88 level, we saw a bit of buying, but given enough time I think that the markets will continue to break down as the oversupply issue should continue to be an issue. Rallies at this point should be nice selling opportunities as this market is most certainly bearish in general, and with this being the case I think that the market should go looking towards the $2.85 level underneath. A breakdown below there census market looking for the $2.75 level longer term, and perhaps even the $2.50 level after that which is my longer-term target. I expected plenty of volatility, because quite frankly the natural gas markets are just that: volatile.

Selling rallies

I continue to sell rallies going forward, and I believe that the market has a massive ceiling at the $3 level. It’s not until we break above the $3.10 level that I would be concerned about selling, and on top of that we are starting to see extraordinarily bearish pressure overall.

NATGAS Video 21.8.17

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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