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Natural Gas Price Forecast – Natural gas markets flat

By:
Christopher Lewis
Updated: Jun 17, 2019, 16:10 UTC

The natural gas markets have done very little during the trading session on Monday as we came back to work. That being the case it’s very likely that we continue to simply grind in this generally dead market.

Natural gas daily chart, June 18, 2019

Natural gas markets did very little to kick off the week on Monday as we continue to simply mill about. That being the case, the market is likely to drift a little bit higher because quite frankly there is no major push lower. However, looking at the chart you can see that the $2.50 level is marked, as it was a major breakdown point yet again. I like the idea of fading rallies that show signs of exhaustion, as it simply is a continuation of what we have seen over the last several months.

NATGAS Video 18.06.19

Even if we break above the $2.50 level, I suspect that we are looking at even more resistance above there at the $2.66 level. This is a market that has shown extreme weakness, due to the fact that there has been a glut of supply and that should continue to be the case. Ultimately, this is a market that doesn’t typically rally until the fall in North America anyway, so as it is not cyclically in its bullish phase, it makes sense that we continue to see exhaustion pounced upon by the larger market forces.

To the downside, I believe that the $2.25 level underneath will be the initial target, followed by the $2.00 level. Quite frankly, there is nothing on this chart that suggests that we should be buyers in this market, and therefore it’s very likely that a simple focus on being patient is all you can do at this point, selling signs after short-term rallies are the best entries.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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