Natural Gas Price Forecast – Natural gas markets drift lower on Tuesday

Natural gas markets fell slightly during the trading session on Tuesday, as we continue to meander in the same range that we have been in for some time, and of course unfortunately are somewhere in the middle.
Christopher Lewis
Natural gas daily chart, April 03, 2019

Natural gas markets went back and forth during the trading session on Tuesday, as we continue to meander around in the overall consolidation range. We are basically in the middle of that range, with the $2.90 level above being the top of the range that extends its resistance to the $3.00 level, and the $2.60 level underneath being the beginning of significant support down to the $2.50 level. With that being the case, and the fact that we are simply sitting at the $2.68 level, there isn’t much to do. Unfortunately, this market hasn’t offered much in the way of bigger trading opportunities.

NATGAS Video 03.04.19

That being said, I am bearish of natural gas so I look for short-term rallies that I can sell. It’s difficult to hang on to larger positions, but short-term and small positions certainly can be done. With all of that in mind it’s likely that the markets will only offer little bits and pieces, so with that it’s very likely that we continue to drop in general. If somehow we break down below the $2.50 level, then it would be a very negative sign, but quite frankly it’s unlikely to happen as the $2.50 level has been a major support level for a very long time. On the other side, if we were to break above the $3.00 level it would be an extraordinarily bullish sign. All things being equal, I think we stay in this range for most of the year, so therefore simple trading back and forth with a downward bias is probably the best way.

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
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.