Natural Gas Price Forecast – Natural gas markets slam into resistance

Natural gas markets have been rallying over the last several days, and quite frankly have been rather impressive for the first time in recent memory. Part of this could have been due to hotter than expected temperatures forecasted in the United States for the next week or so.
Christopher Lewis
Natural gas daily chart, September 05, 2019

Natural gas markets have rallied a bit during the trading session again on Wednesday, testing the $2.40 level which I think is the beginning of significant resistance to the $2.50 level. I do expect this market to run out of steam right around here, so I have initiated short positions with a stop loss just above the $2.50 level. That obviously is a large, round, psychologically significant figure, and a break above that level would attract a lot of attention from market participants.

NATGAS Video 05.09.19

Beyond that, we also have the 200 day EMA closer to the $2.60 level, which is also a longer-term trader and algorithmic marker. You can also make an argument for the 50 day EMA turning upwards to signal certain systems as well. I think at this point, we are starting to build the base to turn things around but these are always messy affairs. The last thing you want to see is this market suddenly take off if you are bullish. You want to see a nice bottoming pattern, a bit of a grind back and forth, and then a surge higher. We have had a little bit of a grind, but quite frankly it hasn’t been enough for my liking. I would not be surprised at all to see this market reach towards the $2.25 level, if not the $2.20 level before finding substantial support. That being said, the $2.50 level above can’t be ignored if it gets broken.

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.