FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
40,651,388Confirmed
1,122,997Deaths
30,356,688Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
Natural Gas Price Forecast - Natural Gas Markets Fight Back
Natural Gas storage tanks , Oil tank , LPG , Petrochemical plant , Petroleum

Natural gas markets initially fell during the trading session on Friday as we are continuing the overall downtrend. However, we have turned around to show signs of life again and it’s very likely that the market is starting to get to be a bit overextended. Ultimately, by forming the candlestick that it has we could see a bit of a bounce, but I would treat that as only a short-term trade. We are at extreme low right now, so that makes quite a bit of sense. The $2.00 level underneath should be a massive “floor” in the market.

NATGAS Video 06.01.20

All of that being said, this was helped by a natural gas storage figure at -58 billion, as opposed to the expected -60 billion. With that in mind, it’s likely that we could see this market return to the $2.20 level, and perhaps even try to overtake it. If it does, then a move to the $2.30 level is possible. That being said, I would be looking to short any rallies that show signs of exhaustion as warmer than anticipated temperatures continue to be a major problem across the lower 48 in the United States. If we were to somehow break down below the $2.00 level, that would be catastrophic for the natural gas markets, because it is such a large, round, psychologically significant figure, breaking down below there would of course cause a chain reaction. It is also a large options barrier so it should be watched. Natural gas has had a horrific winter, and it looks like even though a bounce is somewhat imminent, this won’t change.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US