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Natural Gas Price Forecast – natural gas markets do nothing on quiet session

By:
Christopher Lewis
Updated: Feb 18, 2019, 16:34 UTC

Natural gas markets of course did very little during the trading session on Monday, which makes quite a bit of sense as the Americans were celebrating Presidents’ Day, and at this point if the Americans aren’t on board, the market simply don’t move much.

Natural gas daily chart, February 19, 2019

Natural gas markets went back and forth during the trading session on Monday, as we continue to see a lot of choppiness in this market. Looking at the chart, there is an area of massive support at $2.50, an area that has been very important more than once. The market breaking down below there would of course be a very negative sign and could send this market down to the $2.25 level.

NATGAS Video 19.02.19

I suspect that we will probably rally given enough time though, and if we can break above the $2.75 level, perhaps reaching towards the $3.00 level. That’s an area that has a gap at it, and it’s very difficult to imagine breaking above there, but if we do I think there is plenty of resistance above at the $3.50 level as well. Quite frankly, I think it’s only a matter time before rallies offer selling opportunities and that’s probably the best way to play this market. I have no interest in trying to buy this market, although I do think that given enough time we will get the rally that is so desperately needed. We are oversold, and the fact that we are going sideways over the last couple of weeks suggest to me that we are trying to build a bit of a base and an opportunity to get a relief rally. Again, I have no interest in buying this market, only waiting to sell this market above at the first signs of exhaustion.

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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