Natural Gas Price Forecast – natural gas markets continue to kill time

Natural gas markets continue to kill time going sideways as we simply have no directional bias at this point. That being the case, I believe that it’s only a matter of time before we turn around and bounce in this relatively quiet market.
Christopher Lewis
Natural gas daily chart, February 20, 2019

Natural gas markets continue to look very quiet as we continue to base near the $2.50 level. Ultimately, I believe that this market will get a bit of a bounce due to the fact that we are sitting on major support. The longer-term outlook for this market is a bit suspicious though, and I think that traders will come into sell rallies as they occur. Ultimately, I am a seller of these rallies and don’t have any interest in buying this potential bounce, because we have seen so much in the way of negativity for the longer-term, and of course there is a major problem with oversupply.

NATGAS Video 20.02.19

There is also concern about global demand for energy overall as the global markets are pricing in less global growth. Obviously, that doesn’t do well for energy markets and with relatively cheap crude oil out there, it makes sense that natural gas may struggle as well. With both the United States and the Canadians having the ability to power the world for centuries with natural gas alone, it’s going to take something rather significant to make the market undersupplied. It can be undersupplied for short moments in time, but longer-term that is almost impossible at this point. If we did break down below the $2.50 level, the $2.25 level is the next support level. Honestly, I prefer that selling closer to the $3.00 level, or perhaps even the $3.50 level is much more appealing as it goes with the longer-term trend.

Please let us know what you think in the comments below

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

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US