Natural Gas Price Forecast – Natural gas markets continue to look horrible

The natural gas markets initially tried to rally during the trading session on Wednesday but gave back the gains to show signs of weakness yet again. At this point, it could be a bit of an inverted hammer, which of course is a negative sign if we break down.
Christopher Lewis
Natural gas daily chart, April 25, 2019

Natural gas markets have tried to rally during the trading session on Wednesday but gave back the gains as we continue to see a lot of negativity out there. The candle stick looks horrible, and we are dancing around the $2.50 level, an area that has been massive support and of importance for some time. With that being the case, it’s very likely that we are going to continue to see a lot of action in this area but if we were to break down below the lows of the day on Wednesday it would be a very negative turn of events. Having said that, that is exactly what I think will happen given enough time.

NATGAS Video 25.04.19

If we do get that breakdown, then we could go down to the $2.25 level. At this point, I would anticipate that a lot of profit taking would happen there. The alternate scenario of course is that we break above the highs from the trading session on Wednesday, and that of course would be somewhat bullish but I think short-lived at best. At the $2.75 level I think there is a significant amount of resistance based upon the 50 day EMA and of course the structural trading in that region. With that being the case, I think that we either sell now or we sell after a short-term rally. Signs of exhaustion after that rally I think would be jumped upon by traders around the world.

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