Christopher Lewis
Add to Bookmarks
Natural gas daily chart, December 19, 2018

Natural gas market has rallied rather significantly during the trading session on Tuesday, filling the gap from a couple of days ago. Quite frankly, it doesn’t really matter though because we have broken down so much that this rally should only invite more selling as traders who have been long and perhaps punished over the last couple of days will be more than happy to get out of the market at these higher levels. Beyond that, traders that are looking at shorting this market have an opportunity to do so in a higher level.

NATGAS Video 19.12.18

I still believe that the $4.00 level above offers resistance, and I think that the level will see plenty of Sellers jump in if we reach that high. Quite frankly, I would love to short this market near that area but the question is whether or not we can even get to that level? I would point out that the 50 day EMA is starting to rollover just below there at the $3.93 level, so I think that could be a barrier as well.

Know where Natural Gas is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Underneath, I believe that the $3.50 level is the beginning of significant support based upon the gap higher in early November. I think we are going to go down to the $3.00 level, but obviously there will be the occasional rally between here and there. I look at those rallies as an opportunity to start shorting again, because quite frankly there is more than enough natural gas out there to supply the market, and any shortcomings will be overcome rather quickly.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker