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Natural Gas Price Forecast July 13, 2017, Technical Analysis

By:
Christopher Lewis
Updated: Jul 13, 2017, 06:57 UTC

Natural gas markets rolled over during the session on Wednesday, after the initial surge this week. Because of this, I think that the longer-term

Natural gas daily chart, July 12, 2017

Natural gas markets rolled over during the session on Wednesday, after the initial surge this week. Because of this, I think that the longer-term downtrend is coming back into play, and that should send this market looking for the $2.85 level. A breakdown below there sends this market down to the $2.75 level, and possibly lower than that. I believe that the market continues to find sellers on rallies, and I certainly will follow. The natural gas markets are far too oversupplied, and I think that part of what we are seeing on Wednesday is a market that is getting ready for the inventory numbers coming out today. That could be a catalyst for a massive move in one direction or the other. Volatility is going to continue to be a mainstay of this market, but I think in general that every time we rally it offers an opportunity to short. In fact, I have no interest whatsoever in buying this market anytime soon.

The $3.10 level

I believe that the market has a massive amount of resistance at the $3.10 level, and therefore as long as we stay below there, I feel that the market will continue to be a very volatile and difficult market, but ultimately a very negative market, and that is the most important part of my analysis, that we are not going to rally for any real length of time, and that selling repeatedly will be the way going forward.

NATGAS Video 13.7.17

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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