Natural Gas Price Forecast- natural gas markets testing support

Natural gas markets were volatile during the day on Thursday, as we were awaiting inventory figures. They did come out a little higher than expected, and therefore we broke down below the vital support level initially, but it seems as if the market is still respecting the level.
Christopher Lewis
Natural gas daily chart, September 21, 2018

Natural gas markets went back and forth during trading initially on Thursday, but as the report came out a little bit bearish, the market broke down through the $2.90 level, only to turn around and see massive buying. Looking at the chart, it’s obvious that the $2.90 level is important, and now that we have turned around to form a long tailed hourly candle, I believe that if we can break down below that tale, then the market will unwind to the $2.85 level. Longer-term, we have been consolidating for some time between the $2.95 level and the $2.75 level, with $0.05 worth of width after that. Ultimately, this is a market that is going to be contained within the longer-term range, and quite frankly we had gotten a bit ahead of ourselves. However, it looks like the buyers are quite ready to give up so it’s very likely that we will see tenacity. While I believe there will be a selling opportunity rather soon, it may be closer to the $2.95 level.

It’s not that I can’t see a scenario where I would buy natural gas, it’s just that we are way to elevated at this point to do so as it would be chasing the trade and I think the risk to reward ratio isn’t quite there to make taking that side of the phrase very palatable. All things being equal, I think that if you are a buyer you need to be looking for value more than anything else. This time of year does tend to be bullish though.

NATGAS Video 21.09.18

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
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