Natural Gas Price Forecast – Natural gas markets stabilize

Natural gas markets went back and forth during the trading session on Tuesday as we have perhaps gotten a bit oversold. However, that doesn’t change the attitude of the market in general, just means that we may get a bit of a pause in the carnage.
Christopher Lewis
Natural gas daily chart, June 05, 2019

Natural gas markets went back and forth during trading on Tuesday as we are well below a previous major support level. By breaking below the $2.50 level we had seen a lot of negativity jump into the marketplace and send sellers into overdrive. That being said, the $2.50 level should now be resistance as it has been important in the past. Not only has it been important recently but has been important long term. It’s a large, round, midcentury number, so it makes sense that a lot of attention will be paid to it.

NATGAS Video 05.06.19

To the downside, I believe that the $2.25 level will be targeted, but we may get a bit of a pop between here and there. By rallying towards the $2.50 level I think that there will be a lot of people who had been playing that level for support willing to jump out of the market and close their long positions. That of course puts negative pressure on the market. Beyond that, this is the wrong time of year to expect a lot of bullish pressure in the natural gas markets, because there simply is no demand for heating. There are a lot of concerns about global growth out there, which of course has an effect on the demand for natural gas. Granted, later this year when we start reaching towards the colder months, natural gas will get a bid but in the meantime every time we rally, I’m looking for an excuse to start selling.

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.