Advertisement
Advertisement

Natural Gas Price Forecast – natural gas markets break out to kick off the week

By:
Christopher Lewis
Updated: Sep 25, 2018, 04:44 UTC

Natural gas markets broke above the psychologically significant $3.00 level during the day on Monday, showing signs of real strength. We are starting to head into the colder months in the northeastern part of the United States and the seasonality seems to be working for it.

Natural gas daily chart, September 25, 2018

Now that it seems apparent that the natural gas markets are not going pull back and give you a better entry price of any significance, you may want to look towards the $3.00 level below as a potential entry point, or better yet the $2.95 level if you get the opportunity. I would not be a seller at this point, at least not until we were to break down below the $2.90 level, and I would keep an eye on the weather reports for the northeastern part of the United States as well as geopolitical issues involving Russia as they supply so much in the way of gas for Europe. Overall though, this tends to be a strong time of year and I think that’s going to continue to be the case.

I would keep my position size relatively small and I would keep it to the short-term charts, as this market can move quite suddenly and without warning. We obviously have an important economic announcement coming out of the FOMC later this week that could move the US dollar, which could have a little bit of an effect on this market. At this point though, selling seems to be a very unlikely opportunity. However, the market does have trouble sustaining above the $3.00 level for a significant amount of time. Keep that in mind, and play momentum based trades only. If we were to break down below the $2.90 level, we would probably “reset” near the $2.80 level.

NATGAS Video 25.09.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement