Natural Gas Price Forecast – Natural gas markets formed neutral candle

Natural gas markets went back and forth during the trading session on Tuesday, as we continue to chop around just above is significant support. By doing so, it shows that the market is still trying to decide where we are going next.
Christopher Lewis
Natural gas daily chart, October 09, 2019
gas pipeline

Natural gas markets have gone back and forth during the trading session on Tuesday, as we continue to dance around above the support level underneath. The $2.25 level is an area that of course offers significant support as it had offered massive amounts of resistance during the month of August. At this point, the market looks as if it is trying to involve “market memory” in this area, as we start to head towards the winter season which of course will demand much more natural gas to heat homes in the United States and European Union.

NATGAS Video 09.10.19

At this point, we are below the 50 day EMA, so we are still technically in a downtrend but as we have seen just below, there is a significant amount of structure. If we can break above the 50 day EMA, then the market probably goes looking towards the $2.50 level, possibly even the 200 day EMA which is about $0.10 above there. Ultimately, natural gas continues to be oversupplied longer-term, but we do get that Winter bounce every year that we can take advantage of, so that’s essentially what I’m waiting for. As a proxy, I am using the 50 day EMA as a buying opportunity. To the downside, I don’t have much in the way of interest in selling, simply because we are at such extended lower levels. The $2.00 level underneath should considered to be the “hard floor” of the market. Quite frankly though, I would be surprised to see this market reach that area.

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.