Natural Gas Price forecast for the week of March 19, 2018, Technical Analysis

Natural gas markets initially tried to rally during the week but then rolled over at the $2.82 level. Ultimately, this is a market that showed exhaustion, so I think that the markets will eventually find support underneath.
Christopher Lewis
Natural gas weekly chart, March 19, 2018

Natural gas markets tried to rally during the week, but as we got the bearish numbers coming out of the inventory situation, the market rolled over again. Natural gas is certainly going to struggle with the weather getting warmer in the United States, and of course the inventory numbers being more bearish than anticipated. The $2.50 level underneath continues to offer support, so I think if we can break down below there, the market probably breaks down significantly. Otherwise, if we do rally I think that short-term traders will be looking for selling opportunities closer to the $3.00 level.

NATGAS Video 19.03.18

I think the natural gas markets will continue to be very noisy, and I do believe that it’s easier to trade this market from shorter-term standpoint. Either way, I look at this as an opportunity that gives you plenty of opportunities to go short if we get any type of rally. A breakdown below the $2.50 level probably sends this market looking for the $2.25 level. If we break down below there, it’s likely that the $2.00 level will be targeted as well. I would be stunned if we broke above the $3.00 level, but even then, I’m not ready to start buying as I think the $3.20 level will also bring in even more selling pressure. This is such a choppy marketplace due to the fact that it’s very thin at times, but with the massive drilling coming on line in the United States, it’s likely that we will continue to see sellers come out every time you get a chance.


Suggested Articles


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

Top Promotions

Top Brokers

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