Natural Gas Price Forecast – Natural gas markets drift lowerNatural gas markets fell a bit during the trading session on Wednesday, as we continue to see sellers above. We have yet to fill the gap that I’ve been talking about, so that of course is a bit of an issue.
As far as natural gas markets are concerned, you should be looking for selling opportunities. Yes, we have rallied over the last several weeks, but only slightly so. This looks more or less like a slow-moving short covering rally, and we have significant amounts of resistance just above that should continue to cause issues. What you do next has a lot to do with what financial instrument you choose to express your idea in.
NATGAS Video 07.03.19
If you have the ability to trade CFD markets, then you will have much more flexibility. If you are trading futures, you are going to need to be a little bit patient, because of the higher tick value. When I look at this chart, I can see that there is clearly going to be resistance near the $3.00 level as that is the scene of a gap that has yet to be filled. Beyond that, we also have the 50 day EMA which sits just in the same area as well.
I believe at this point if you are using the more leveraged futures market, you simply have to wait for higher price is the start selling. If you have CFD abilities, then you can adjust your position size they have a wider stop loss. The sellers should come in somewhere between here and $3.00 and start aiming again for the $2.50 level underneath which is a major floor in the market from a longer-term charts. At this point, I have no interest in trying to buy this market.
Please let us know what you think in the comments below