Natural Gas Price Forecast – Natural gas markets find buyers on Friday

Natural gas markets fell a bit during the trading session on Friday but found enough support at the $2.55 level II turn back around, at least short term.
Christopher Lewis
Natural gas daily chart, May 27, 2019

Natural gas markets initially pulled back a bit during the trading session on Friday but as you can see we have rallied a bit, reaching towards the $2.60 level. There is a supportive field to this move, and I think at this point you are probably better advised to step to the sidelines and look for a selling opportunity at a higher level. Remember, we are in the wrong time of year for the natural gas markets to rally for longer-term moves as there is much less demand this time of year.

NATGAS Video 27.05.19

Ultimately, the 50 day EMA above should offer resistance near the $2.67 level, which I think it extends to the $2.70 level. Any sign of exhaustion in that area should be a nice selling opportunity. If we can break above the $2.70 level, then we could go to the $2.90 level which would be a huge resistance barrier. The $2.50 level underneath is massive support and essentially the “floor” in the marketplace, so I think as long as we can stay above that level we will continue to undulate back and forth with a slightly negative bias. However, if we were to break down below the $2.50 level, the market will unwind rather drastically and probably reach the $2.25 level quickly.

I have no interest in buying natural gas at this point in time, as this is a major downtrend that has been in effect. Ultimately, sometime in November I will start buying as the market tends despite that time of year due to higher demand.

Please let us know what you think in the comments below

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.