Natural Gas Price Forecast – Natural gas chops sideways

Natural gas markets went back and forth during the trading session on Tuesday as we continue to build some type of base. However, if you are patient enough you should deny shorting opportunity.
Christopher Lewis
Natural gas daily chart, June 12, 2019

Natural gas markets went back and forth during the trading session on Tuesday, showing signs of exhaustion in both directions. That being the case, it looks very likely that we are trying to form a bit of a bottom, but that isn’t a buying opportunity. The $2.50 level above is massive support that now should offer massive resistance. I have marked by a purple box on the chart, and as you can see it’s also the scene of a major breakdown candle. In this environment, trying to catch the falling knife is a sure way to lose money so I’m waiting to see signs of exhaustion after a sudden rally to take advantage of. I believe that the $2.25 level will be the target once we get the exhaustive candle above.

NATGAS Video 12.06.19

I also believe that we could break down below the $2.25 level, perhaps reaching down to the $2.00 level where there should be a really significant floor. I should also point out that the $2.50 level resistance barrier extends to at least the $2.60 level above, which coincides nicely with the 50 day EMA. During the month of June, I have absolutely no interest in trying to pick up this market and start buying, because quite frankly the demand just won’t be there for several months, perhaps even as late as November based upon the cyclical nature of natural gas. It’s simple, we have over 14,000,000,000,000 ft.³ of natural gas known in the United States alone in the ground, and Canada has even more. We are a long way from running out of this resource.

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