Advertisement
Advertisement

Natural Gas Price Forecast – Natural gas continues to show weakness

By:
Christopher Lewis
Updated: Apr 12, 2019, 17:34 UTC

The natural gas markets fell slightly during the trading session on Friday as we continue to see an overall malaise when it comes to the marketplace. Overall though, this is a market that should continue to be range bound, and therefore I think we may get a bit of a bounce soon.

Natural gas daily chart, April 15, 2019

Natural gas markets have been consolidating for some time now, between the $2.90 level on the top and the $2.60 level on the bottom. Looking at the chart, you can see that there is a $0.10 range at both of those levels that keeps the market somewhat contained. I believe at this point it’s very likely that the market will continue to respect those levels, and as we are getting close to the support level, I think that it’s very likely that a bounce could be coming. This doesn’t mean that I’m willing to jump in right away, but I am certainly looking to see what happens at the $2.60 level.

NATGAS Video 15.04.19

If we were to break down below the $2.50 level, then I think natural gas could be an extreme trouble. That is a major support level on longer-term charts, and of course means that it’s crucial to our trading analysis. A short-term bounce is probably all we will get in the natural gas markets, so this is the least exciting of trades. I much more interested in fading rallies above, especially if they get all the way to the $2.90 level. I don’t even know that will see that in the next couple of months, but if we do I more than willing to jump in and hit the market hard to the downside. All things being equal though, I do believe that we stay in this range.

Please let us know what you think in the comments below

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.

Did you find this article useful?

Advertisement