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Natural Gas Price Forecast – Natural gas markets find support after initially falling

Christopher Lewis

Natural gas markets broke down a bit during the trading session on Thursday, breaking below the $2.50 level, but found plenty of buyers to turn things around. This hammer suggests that we are at the extreme lows of the overall consolidation area, so therefore it makes sense that we could get a significant bounce from here. If we do get that, the $2.60 level will be resistance, and then possibly the $2.70 level. Longer-term, we could go to the $3.00 level but obviously that would take a long time to get to. This is an area where we could get a bit of an opportunity.

NATGAS Video 19.04.19

If we did break down to the bottom of the range and slicing through the bottom of the hammer that could send this market much lower. However, by the time the day ended it looks as if we have found a bit of life, and therefore it’s likely that we will do exactly that. Clearly, the risk to reward ratio favors that, but obviously you need to keep the proper risk parameters intact.

If you have the ability to play natural gas markets from a longer-term standpoint, this could be your entry for a significant move over the next several weeks. The 50 day EMA is all the way up at the $2.77 level, so be aware of the fact that it could come into play as well. Overall though, these are the levels that we look for.

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This article was originally posted on FX Empire