Natural Gas Weekly Price Forecast – Natural gas markets run into exhaustion

Natural gas markets rallied again during the week but managed to find resistance at the 50 week EMA to turn around and form a shooting star. The shooting star of course is a very negative sign, but I think at this point it’s obvious that we have started to put in a bottoming pattern.
Christopher Lewis
Natural gas weekly chart, September 16, 2019

Natural gas markets have rallied during the week again but gave back about half of the gains to form a bit of a shooting star. The shooting star sits on top of the $2.50 level, and at this point a short-term pullback makes quite a bit of sense as we may have gotten a bit parabolic. All things being equal, if we pull back from here it’s likely that we will find buyers underneath and looking for some type of supportive candle stick in order to start buying again. Ultimately though, we could break above the top of the shooting star and therefore show an impulsive momentum. Either way, it looks as if we are starting to get close to the “Winter pop” that we get every year.

NATGAS Video 16.09.19

Ultimately, the market will rally given enough time, and we have broken above a trend line. With that, I think we are getting very close and I do believe that most of the summer was building the base for the move higher. You can see that in late 2018 we had a massive move towards the $5.00 level, before we broke down again. We aren’t quite there yet, but we are getting closer to some type of move like that. Will it be all the way to $5.00? I doubt it. However, there is a significant amount of momentum just waiting to be released in this marketplace, especially if the winter ends up being relatively cold.

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