Natural Gas Price Forecast – Natural gas markets fail to hang onto gains

Natural gas markets initially tried to rally during the trading session on Wednesday but filled to hang onto the gains. This is particularly troubling considering that the previous session was extraordinarily negative.
Christopher Lewis
Natural gas daily chart, July 18, 2019

Natural gas markets initially tried to rally during the trading session on Wednesday but as you can see we have given back quite a bit of the gains. By doing so, it shows just how much bearish pressure there is in this market, as we said just above the $2.30 level. This is obviously an area that will attract a lot of attention due to the fact that it is a round, psychologically important figure. If we can break down below the $2.30 level, then we could go much lower. At that point, I would be looking at the $2.20 level as the next target.

NATGAS Video 18.07.19

Ultimately, if we can break down below the $2.26 level, then we can finally start to talk about the $2.00 level which of course is an area that will attract a significant amount of attention. The alternate scenario is that we break above the top of the candle stick for the trading session on Wednesday, but I think that the $2.40 level above will be massive resistance, as it was previous support. The 50 day EMA is grinding sideways and then starting to turn a little bit lower, so this tells me that we are going to go much lower. Ultimately, any type of exhaustive candle will probably be an excuse to start selling again. I think that the resistance extends to at least the $2.50 level, and therefore I don’t have any interest in buying this market, rather I am more than willing to start shorting it on signs of exhaustion above.

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