Natural Gas Price Forecast – Natural gas continues to grind sideways

The natural gas markets went back and forth during the trading session in a slightly negative bias as the market simply continue to trade in a larger consolidation area that we have been talking about for some time. That being said though, it’s obvious that the downside has a bit more strength to it.
Christopher Lewis
Natural gas daily chart, April 12, 2019

Natural gas markets went back and forth during the trading session on Thursday, as we continue to try to reach one of the size of the larger consolidation area. The market of course has a lot of support down at the $2.60 level, an area that I’ve been talking about for some time. I believe that area also extends down to the $2.50 level, so it’s essentially a $0.10 range. Any move towards that area should produce a bounce and a short-term buying opportunity. If we were to break down below the $2.50 level that would be somewhat catastrophic for natural gas.

NATGAS Video 12.04.19

To the upside, we have a lot of resistance at the $2.90 level that extends to the $3.00 level. If we were to break out above the $3.00 level, natural gas will probably climb quite drastically. All of that being said, it’s likely that we simply bounce around between those two ranges. If that’s going to be the case, then we can take advantage of trades as we approach those levels, but we also need to recognize that patients will be paramount when it comes to trading this market, because quite frankly they are so strong that it’s going to be difficult to break out of it. Beyond that, we are entering the time of year where natural gas tends to be range bound anyway, so going back and forth between these levels makes a lot of sense. That being said there’s a lot of money to be made in natural gas if you are patient enough to wait for the right area to buy or sell.

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