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.

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