Natural Gas Price Forecast – natural gas markets find it exhaust and above

Natural gas markets initially tried to rally during the trading session on Tuesday but found the $3.35 level to be a bit too resistive. We have gotten overstretched at this point, and quite frankly a pullback makes complete sense.
Christopher Lewis
Natural gas daily chart, October 10, 2018

Natural gas markets initially tried to rally during the trading session on Tuesday but found the $3.35 level to be a bit too far. At this point, the market is most certainly overbought, but I think at this point it’s likely that we are simply going to look for a pullback. The early action in the United States was pretty negative, but I still see the $3.20 level as important, as well as the $3.10 level after that. I do like buying pullbacks, and I believe that given enough time we will see opportunities to go long. After all, this is a time of year that it’s historically bullish for natural gas as colder temperatures arrive at North America. For those of you trading the CFD market, you may not be aware that the futures market is trading the November month, which of course is cold.

If we were to break down below the $3.20 level, I think at that point we probably go down to the $3.10 level next. That’s an area that is even more supportive, and that of course is followed by the $3.00 level. Either way, at this point I have no interest in shorting this market although we are most certainly overbought, and I don’t think buying here is necessarily prudent either. It is possible that the $3.25 level offered short-term support, but at this point and these high levels you should be looking for value, not momentum anymore as we have come so far in such a short amount of time.

NATGAS Video 10.10.18

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.