Natural Gas Price Forecast – natural gas markets bounce

Natural gas markets broke higher during the trading session on Tuesday, slicing above the $3.20 level. At this point, the market continues to struggle above though, as we have seen a lot of resistance recently. This snap higher of course was a good sign, but we’ve already given back some of the gains.
Christopher Lewis
Natural gas Midday chart, October 30, 2018

Natural gas markets broke above the $3.20 level during the trading session on Tuesday, reaching towards the $3.28 handle. By pulling back the way we have from there, it shows that we are starting to struggle a little bit, but the hammer from the Monday session I think is the signal that we are looking to break below before selling with any type of conviction. It does look as if the market is starting to roll over a bit, which of course shows signs of failure at extraordinarily high levels, and keep in mind that the United States  has an outsized effect on this market. If we get a mild winter, and some people are calling for that, that should cause natural gas markets to continue to fall a bit.

NATGAS Midday Video 30.10.18

If we break down below the hammer from the Monday session, that should open the door towards the $2.90 level underneath. Ultimately, if we can break above the top of the candle stick for the trading session on Tuesday, that then would open the door to the $3.40 level where we have seen extraordinarily large amount of selling pressure build up. I think the one thing you can count on in this market is a lot of sideways chop, which makes sense as we are trying to move upon the unpredictable weather patterns. This is seasonally strong trading under normal circumstances but watch this weather reports in the United States and of course the inventory numbers.

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