Natural Gas Price Forecast – Natural gas markets break down on Friday

The natural gas markets broke down during the trading session on Friday, breaking through a major support level. By breaking through that level, it’s likely that we are going to continue to go much lower.
Christopher Lewis
Natural gas daily chart, June 06, 2019

Natural gas markets fell hard on the Friday session as we continue to see a lot of bearish pressure in this marketplace. Ultimately, it looks as if the market is going to continue to struggle due to the trade war situation and of course a lot of concerns when it comes to a widening global problem. Now that we are down below the $2.50 level we could go as low as the $2.25 level, possibly even the two dollars level after that. At this point, I don’t have any interest in buying this market and it does look as if the 50 day EMA continues offer massive resistance.

NATGAS Video 03.06.19

If we did break above the 50 day EMA, then the market could go higher. Looking at this chart, I think that it continues to be a longer-term grind to the downside as natural gas markets are worried about the global growth story, and of course it is the wrong time of year to think that the market is going to continue to turn around and rally significantly.

With this, I continue to short exhaustive candles on short-term charts and take advantage of negativity. If we did break to the upside, it would more than likely just be a nice selling opportunity above. The $3.00 level above is the absolute “ceiling” in the market, and therefore I believe that there are plenty of opportunities until about November, when the market typically turns around. I have no interest in buying whatsoever as this is a broken chart.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US