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Christopher Lewis
Natural gas daily chart, July 29, 2019

Natural gas markets fell almost immediately during the trading session on Friday as we have broken down below the $2.20 level. By doing so, and the fact that we are closing towards the bottom of the candle stick tells me that we are more than likely going to continue to break down. The $2.15 level is offering a little bit of support, but ultimately this is a market that I think is probably going to go looking for even lower levels.

NATGAS Video 29.07.19

The $2.15 level being broken to the downside on Monday would be a very bullish sign, perhaps reaching down towards the $2.00 level which of course is a large, round, psychologically significant figure. Alternately, we could rally from here but there is plenty of resistance above that could continue to show signs of selling pressure. I see that all the way to at least the $2.30 level, but quite frankly it’s not until we break above the $2.50 level that I would consider the markets have turned around.

Looking at the chart, it looks horrifically negative, so I don’t see any reason to think that the attitude is going to change in the near term, so I think that the sellers will continue to take advantage of rallies. I see nothing good about this chart, so with that being the case it’s likely that it’s just a matter of having bounce is that we can fade for those who are profitable.

Please let us know what you think in the comments below

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