Natural Gas Price Forecast – Natural gas grinds higher

Natural gas markets rose during the Thursday session on better than anticipated inventory numbers. However, this is still a very bearish market so I think this is going to set up for a nice trade above.
Christopher Lewis
Natural gas daily chart, June 28, 2019

Natural gas markets rose during the trading session on Thursday, breaking above the $2.30 level. That is a reasonably important level as it has been supported in the past. However, I think there is an entire zone of resistance that extends to the $2.40 level. Because of this, it’s very likely that the market will eventually find reasons to fall, and I would be a seller of the first signs of true exhaustion. I believe the market could go down to the $2.20 level underneath, possibly even the $2.15 level.

NATGAS Video 28.06.19

If we were to turn around and break above the $2.40 level, it is likely that we could continue to go another $0.20 to the upside. That is a real possibility, but even then I’m still looking to sell this market. Quite frankly, there isn’t much of a scenario right now that I’m interested in buying this market. We are oversold, and that is something that can’t be denied. However, just because we are oversold does not mean that we should be buyers.

This market is very cyclical when it comes to the seasons, and as a result it’s very unlikely that we are going to see this market have the occasional rally between now and November, but they should all be selling opportunities. That being said, I also believe that the “trade of the year” will probably be buying natural gas down the road. We are at least four months away from that scenario though, possibly even five. With that in mind I simply sell this market every time he gets me a nice set up. Right now, we don’t have it.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.