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Natural Gas Price Forecast – Natural gas markets continue to go sideways

By:
Christopher Lewis
Updated: Apr 16, 2019, 16:48 UTC

Natural gas markets fell slightly during the trading session to open up Tuesday trading, but quite frankly we are still within a consolidation area that will continue to decide where the market goes next.

Natural gas daily chart, April 17, 2019

Natural gas markets drifted a little bit lower during the trading session on Tuesday but is still well within the tolerances of the range that I have marked on the chart. We are below the $2.60 level, but you should keep in mind that support extends down to the $2.50 level, so it’s very likely the buyers will return given enough time. In fact, a break down below the $2.50 level would be quite alarming for those in the natural gas sector, because in that area it’s very difficult to be a profitable natural gas supplier. In that sense, we have a little bit of built-in support there.

NATGAS Video 17.04.19

That doesn’t mean that we jump in right away. What we wait for is some type of supportive candle such as a hammer, or a bounce that is significant and with volume, even if it’s on a short-term chart. At that point I’d be willing to buy natural gas for a short-term trade. I recognize that longer-term this is a bearish market, but I think for the next several months we should see this market bounce around below the $3.00 level, and above the $2.50 level. That is something that natural gas does every year and picks a nice range like this and simply sticks to it. If you are a good range bound trader, and perhaps more importantly a very patient trader, natural gas can be a great market to be involved in although it’s not exactly exciting, so for those of you who need a lot of volatility this may not be your market.

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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