Natural Gas Price Forecast – Natural gas markets test 200 day EMA

Natural gas markets fell rather hard during the trading session on Friday, reaching down towards the $2.73 level. Looking at the chart, you can see that we have clearly bounced rather hard once we touch that area, but this is a market that has clear bias of being range bound.
Christopher Lewis
Natural gas daily chart, March 25, 2019

Natural gas markets fell rather hard during the trading session on Friday, reaching down towards the 200 day EMA. That’s an area that of course has a lot of technical importance at times, but as you can see when you zoom out, the chart is clearly consolidating over the longer-term, but you need to pick out the best trades and obvious areas to get involved.

NATGAS Video 25.03.19

Looking at the chart, I believe that the $2.60 level will be the beginning of significant support, extending down to the $2.50 level. If we were to break down below the $2.50 level, that would be an extraordinarily bearish sign. However, I suspect it’s going to be very difficult to imagine a scenario where that happens. If we did though, we would probably go down to the $2.25 level. On the other side, the market has significant resistance at the $2.90 level, extending to the $3.00 level. That is an area that could offer quite a bit of selling.

In the meantime, we are simply in the middle of the range, and I think that will continue to be something that we should pay attention to, and not get involved. Simply selling at the highs and buying at the Lowes has worked for some time, so of course that’s the best way to trade this market. As we are in the middle, I’m on the sidelines and waiting for an opportunity to get involved again.

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.