Natural Gas Price Forecast – Natural gas markets show support on Thursday

The natural gas markets initially fell during the day on Thursday but have shown signs of support at the crucial $2.50 level. This is an area that is going to determine the longer-term trend in my opinion, so it’s a very interesting place to pay attention to.
Christopher Lewis
Natural gas daily chart, April 26, 2019

Natural gas markets initially dipped during the trading session on Thursday, breaking below the $2.50 level again. However, we got a 92 billion billed as opposed to the expected 90 billion build, so although it was slightly bearish, the reality is that it wasn’t nearly as bad as some traders thought. Now that we have a hammer forming which conflicts directly with the shooting star shaped candle from the previous session, we may be beginning to see a bit of a floor put into this market finally. The $2.50 level is crucial, so don’t be surprised if you see a bit of a bounce.

NATGAS Video 26.04.19

That bounce, assuming it happens, is not the beginning of a massive melt up, rather than a bounce from extremely oversold conditions. It is tradable, but you should recognize that there are going to be several areas between here and the top of the longer-term range at the $3.00 level that could cause serious problems. The initial resistance will be near the $2.55 level, followed by the $2.60 level, and then finally the $2.70 level. At any of those points you could see the sellers step back in and try to take this market back down.

If we break down below the bottom of the candle stick for the session on Thursday, that would be an extraordinarily negative sign and could send this market looking towards the $2.25 level next based upon previous history in this market plays.

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

Top Promotions

Top Brokers

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