Natural Gas Price Forecast – natural gas markets drop again on Monday

Natural gas markets fell again during the day on Monday, as we continue to see negativity in this marketplace. The natural gas markets continue to look at the $2.70 level as a target to break down below, so that we can continue to go towards the bottom of the longer-term consolidation range.
Christopher Lewis
Natural gas daily chart, July 24, 2018

Natural gas markets have dropped a bit during the day on Monday, continuing the bearish pressure that we had seen at the end of the Friday session. Natural gas markets continue to look very negative overall, and I think that the $2.70 level will continue to offer a significant amount of support, but if we can break down below there it would free the natural gas markets to go to the bottom of the longer-term consolidation area, which is the $2.60 level. Rallies at this point continue to be offers for selling opportunities, and I believe that the $2.78 level above will be massive resistance.

If we did break above that level, then I think the next selling opportunity is closer to the $2.80 level, followed by the $2.82 level. At this point, even though we are relatively low in the consolidation area on the longer-term charts, I still don’t have any interest in buying this market. It seems as if natural gas simply cannot pick its feet up at this point, and I think that the best thing you can do is either short the market, or simply wait for higher prices that show signs of exhaustion to sell it again.

Demand will be dropping a bit is far as the United States is concerned as we are heading towards cooler temperatures, and as the natural gas markets tend to be very short term focus, I believe that will be one of the main drivers.

NATGAS Video 24.07.18

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.