Natural Gas Price Forecast – natural gas markets break major triangle

Natural gas markets broke down during the trading session on Wednesday, slicing through the uptrend line of a major triangle. Because of this, I think the market has suddenly made up its mind.
Christopher Lewis
Natural gas daily chart, December 13, 2018

Natural gas markets have broken down significantly during the trading session on Wednesday, breaking through the bottom part of a descending triangle. That’s a very negative sign, and I think it’s only a matter of time before we see a move towards the $4.00 level, an area that is massive support. It’s also supported by the fact that it’s not only a large come around, psychologically significant number, but it also has the 50 day EMA attached to it. Because of this, I think a move towards that area will probably find a bit of bullish pressure. I think at this point, it’s likely that we will continue to see a lot of noise, but I prefer to fade rallies just as I have for some time now.

NATGAS Video 13.12.18

Once we break down below the $4.00 level, then I think it’s likely that this market will break down towards the $3.75 level, and then eventually the $3.50 level after that. We are getting towards the time a year where you start to see a bit of weakness in the market, because we are starting to escape the cold months when it comes to the futures markets. If that’s going to be the case, it’s very likely that we will see a lot of volatility, but more or less to the downside than anything else. I believe that the market will be jittery and noisy between now and the end of the year, but I continue to fade short-term candles that look a bit soft.

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