Natural Gas Price Forecast – Natural gas markets fall again

Natural gas markets gapped lower to kick off the trading session on Tuesday, but then turned around to fill the gap and reach towards the $2.40 level. At that point, the market rolled over and showed signs of exhaustion yet again, as we continue to see a bearish action.
Christopher Lewis
Natural gas daily chart, June 19, 2019

Natural gas markets gapped lower to kick off the trading session on Tuesday, but then turned around to reach towards the $2.40 level. That’s an area that has caused resistance several times over the past couple weeks, and of course it is a round figure. That being the case, it’s very likely that the market should continue to find sellers on a short-term rallies. The market has several levels above that could offer that resistance, so pay attention to the following: $2.40, $2.50, $2.55, $2.60, and then finally the $2.07 level.

NATGAS Video 19.06.19

Ultimately, I do believe that fading the rallies should continue to offer nice selling opportunities as the market has been bearish for some time, and I think it isn’t going to change anytime soon. After all, we are in the lowest demand part of the year as the northern hemisphere isn’t looking for heating. Beyond that, we are concerned about the idea of global growth, and that of course has an influence on whether or not the demand will pick up or fall. At this point, I think it’s obvious that natural gas markets are to be sold and not bought, and I think that the targets underneath include the $2.25 level, and of course the $2.00 level after that. Looking at the volatility, I think you should simply pick your battles and wait for an exhaustive looking candles on short-term charts, as the market continues to focus on micro-movements.

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