Natural Gas Price Forecast – Natural gas markets run into resistance

Natural gas markets rallied during the trading session on Wednesday, slamming into the $2.20 level before pulling back. At this point, I believe it is probably still going to be the same story we have seen for some time: every time this market rallies, you should be looking for a selling opportunity.
Christopher Lewis
Natural gas daily chart, August 15, 2019

Natural gas markets have rallied a bit during the trading session on Wednesday, as we slammed into the $2.20 level which is an area that has been important more than once. Because of this, the fact that we pulled back should not be a very big surprise. All things being equal though, the only thing that I am paying attention to is the trend as natural gas is far oversupplied in the demand is very low. Beyond that, we have the 50 day EMA above which is psychologically and structurally resistant, hanging about the important $2.25 level.

NATGAS Video 15.08.19

Looking at the chart, I think the market is trying to find enough sellers to jump in and push lower, perhaps reaching towards the $2.00 level given enough time. That’s an area that I believe will continue to attract a lot of attention, and probably attract a lot of buying. If we can break down through there though, that opens up the door for another $0.25 or so to the downside, as the market will continue to find plenty of reasons to look negative. After all, we have over 14,000,000,000,000 ft.³ of natural gas in the ground in the United States alone. Having said all of that, we are getting relatively close to the time of year where markets start to rip to the upside, but that is still about two months away. I continue to fade rallies going forward at the first signs of trouble but recognize breaking the $2.00 level is a bit of a tall order.

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.