Natural Gas Weekly Price Forecast – natural gas markets fall again

The natural gas markets gap lower to kick off the week, turned around to rally towards the $4.00 level, and then fell again. Overall, this is a market that is broken, and needs to come back down to earth.
Christopher Lewis
Natural gas weekly chart, December 24, 2018

Natural gas markets have gapped lower to kick off the week, but then turned around to rally to reach towards the $4.00 level. That’s an area that of course has a certain amount of psychological resistance, as well as previous support. We broke down from there to send this market lower. The $3.50 level underneath is offering short-term support, but I think given enough time we will probably continue to go much lower, perhaps down to the $3.25 level. Overall, this is a market that has struggled in general, at least over the last couple weeks as the market suddenly realized that we had far too much in the way of buying pressure for the reality.

NATGAS Video 24.12.18

You can see that we broke down through a major symmetrical triangle, and now we have started to fall, it looks as if the bullish season is all but done. Overall, I think that we will go down to the $3.00 level but it is going to take a significant amount of time to get down there. Rallies should continue to offer opportunities to short this market, especially on the daily chart. I think that waiting for rallies to short will probably be the best way to trade this market, because we have fallen almost as fast as we had gotten over bought. Natural gas is abundant, and now that the winter has been more mild than anticipated in United States, that should only become much more the case than usual. Overall, I have no scenario in which a willing to buy this market.

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