Natural Gas Price Forecast – Natural gas markets rally

Natural gas markets rallied a bit during the week, giving a bit of a bounce in what has been a very negative market. At this point in time, the $2.50 level is a major level to pay attention to.
Christopher Lewis
Natural gas weekly chart, June 17, 2019

Natural gas markets rallied a bit during the week, showing signs of a recovery after a three-week breakdown. That being the case, it looks very likely to be an area where sellers could come back into the market to start shorting. The $2.50 level is massive in its implications, and it is a large, round, psychologically significant figure. However, I think that the market has resistance that extends to the $2.60 level. I think that there are plenty of reasons to think that this market continues lower, and if you take a look at it from a high altitude, you can see that we have a bit of a down trending channel going on.

NATGAS Video 17.06.19

If we were to break above the $2.60 level, then I think you need to “reset” and start looking for selling opportunities above there, specifically near the $2.75 level. This is a marketplace that will almost certainly continue to be negative until we hit the fall season, which is major demand season. Ultimately, if we show signs of exhaustion that I’m all over it. However, I think that we need to bounce a little bit further to take advantage of what has been in a reliable trend. To the downside, I think that we could be targeting $2.25, possibly even the $2.00 level after that. Quite frankly, there’s just far too much in the way of supply out there to make this market show any signs of bullishness between now and cold weather in the US/Europe.

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
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