Natural Gas Price forecast for the week of March 12, 2018, Technical Analysis

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Updated: Mar 11, 2018, 14:39 UTC

Natural gas markets went back and forth during the week, ultimately selling on the shooting star. This is a particularly negative sign, because we are at the very bottom of an overall consolidation area. This means that we can’t even pick ourselves up off the floor.

Natural gas markets initially went back and forth during trading during the week but settled on a shooting star. It looks as if the $2.80 level in the CFD market should continue to cause resistance, and I think that the pullback that we have seen from the eyes shows just how bearish this market is overall. However, if we break above the top of the shooting star think we then go looking towards the $3 level above, which is an area that I would be more than willing to start shorting from. At this point, it’s possible that if we break down below the bottom of the shooting star, we could go looking towards the $2.60 level again.

If we somehow break out above the $3.00 level, then I think the next major resistance barrier will be closer to the $3.15 level above. Ultimately, this is a market that I think continues to struggle in general, because the oversupply will continue to be an issue. Ultimately, I think that the markets will continue to be very noisy, and I think that the overall attitude will remain bearish. In general, I think the $2.50 level underneath is going to offer a bit of a “floor”, and if that breaks down it could be massive in its implications. I have no interest in buying natural gas from a longer-term standpoint as I think we are in the wrong time of year to expect a lot of buying for a longer term.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.