Natural Gas Price Forecast – natural gas markets continue to grind lower

Natural gas markets broke down again during the day on Thursday, losing almost 1% as I record the video. The market has reached towards the $2.70 level, an area that I anticipated to be significant support. I believe that the market should continue to go even lower levels, but it would not surprise me at all to see a bounce.
Christopher Lewis
Natural gas daily chart, July 20, 2018

Natural gas markets broke down significantly during the trading session again on Thursday, reaching towards the $2.70 level as it is a large come around, psychologically significant number, and it is of course an area that we have seen support at previously. I think that the market will continue to find sellers on rallies, so I think a bounce from here could be a nice opportunity to start shorting again. If we break down below the $2.70 level, it’s likely that we will continue to go lower, perhaps down to the $2.65 level, and then eventually the $2.60 level which is even more support. In fact, I see that as the bottom of the larger consolidation area, so I think it would take a significant amount of negativity to break down below that level, and quite frankly I don’t expect to see this market do that.

If we were to break down below the $2.66 level, then I think the market would come unraveled. At this point, I think that we continue to drift lower over the longer-term, until value hunters come back into the marketplace. In the short term, it should probably be no surprise at all if we bounce towards the $2.75 level in order to build up enough downward momentum to break through the support level and go much lower. I believe market participants will continue to look upon natural gas with negativity.

NATGAS Video 20.07.18

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

Top Promotions

Top Brokers

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.
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.