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Natural Gas Price Forecast – Natural gas markets continue to drift lower

By:
Christopher Lewis
Updated: Mar 29, 2019, 17:22 UTC

Natural gas markets have struggled as of late, as we continue to drift lower overall. Looking at the markets, it’s obvious that we continue to go back and forth longer term, but right now we are in the middle of the overall range.

Natural gas

Natural gas markets have drifted a bit lower during the trading session on Friday, showing signs of continued bearishness, but quite frankly we only have so far to go from what I see. Recently, we have been trading between $3 on the top and $2.50 on the bottom. Looking at this market I believe that we are reaching towards that support level underneath, which starts at the $2.60 level that extends down to the $2.50 level. At this point, it’s likely that we will find buyers down there so I’m actually waiting for some type of supportive looking candle or a bounce in order to take advantage of it.

NATGAS Video 01.04.19

To the upside, if we were to reach towards the $2.90 level, I believe that there is quite a significant amount of resistance that extends to the $3.00 level. I more than willing to sell at that level once we get there, as we show signs of exhaustion. Natural gas of course is over supplied in general, and as a result it’s likely that the sellers will continue to come back into this market every rally.

Looking at this chart, I think that we will remain within this range for quite some time, and at this point you can simply go back and forth and buy and sell as we reached towards the outer ranges of this area. Overall, it’s very likely that the market is going to be very profitable if you can wait until we get to the levels mentioned.

Please let us know what you think in the comments below

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.

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