Natural Gas Weekly Price Forecast – natural gas markets have wild week

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Updated: Sep 1, 2018, 05:26 UTC

Natural gas markets initially sold off rather rapidly during the week but turned around to break above the $2.90 level. By doing so, we ended up forming a hammer which show signs of resiliency. However, when you zoom out to the longer-term charts it becomes apparent that we are very much still in the middle of the consolidation. That’s not to say that we can break out of it in one direction or the other, just that we are still there.

Natural gas weekly chart, September 03, 2018

Natural gas markets continue to be very noisy, and this week was no exception. We did of forming a hammer that sits on top of the $2.90 level, so this shows that the buyers are not quite ready to give up yet. However, I anticipate that there should be sellers above, but Monday will of course be Labor Day in the United States so volume will be thin to kick off the week. As traders come back from holiday, we should start to see more volume enter the market, and that should offer a nice selling opportunity closer to the $3.00 level. The alternate scenario of course is that we drop straight down and break below the bottom of the hammer, and that of course is a very negative sign. At that point, I would go looking towards the $2.70 level as it has been so supportive over the last couple of years.

At this point, the market remains range bound so there’s no need to get cute or make this more difficult than is absolutely necessary. In general, I believe that the market is one that easier to trade from the short term, but longer-term traders certainly have their say at both the $3.00 level and the $2.70 level.

NATGAS Video 03.09.18

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.