Natural Gas Weekly Price Forecast – Natural gas markets break down for the week

Natural gas markets broke down rather hard during the week, breaking the back of the hammer from the previous week which of course is a very negative sign. In fact, that hammer now becomes a “hanging man”, which of course is a selling signal.
Christopher Lewis
Natural gas weekly chart, July 22, 2019

Natural gas markets have broken down during the week, slicing through the $2.30 level in punching the $2.25 level during the Friday session. The fact that we are closing so low on the range tells you that there is more than likely going to be a bit of follow-through, so it makes sense that the markets reach down to the lows again. The $2.00 level underneath there of course is important, but I think at this point it’s only a matter time before rallies offer selling opportunities. Perhaps it is difficult to sell this market from a longer-term charts, but it certainly can give us an idea as to where we should be trading. I think looking at short-term charts such as the daily chart or even the four hour chart gives you an idea as to when to start selling, but obviously for this chart you should be doing just that: selling.

NATGAS Video 22.07.19

The $2.50 level above for is going to continue to be massive resistance, and I think it’s going to be difficult for the market to break above there. Ultimately, we fade this market on rallies and have no interest in trying to pick up a market that is so oversupplied. To the downside, we could go as low as $2.00, but I do think that we are getting close to the bottom of the downtrend over the next several weeks. Once we start trading colder months contract, then we can start to buy but right now it’s far too early.

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

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