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Natural Gas Price Forecast – natural gas markets continue to grind lower

By:
Christopher Lewis
Updated: Jul 20, 2018, 04:54 UTC

Natural gas markets broke down again during the day on Thursday, losing almost 1% as I record the video. The market has reached towards the $2.70 level, an area that I anticipated to be significant support. I believe that the market should continue to go even lower levels, but it would not surprise me at all to see a bounce.

Natural gas daily chart, July 20, 2018

Natural gas markets broke down significantly during the trading session again on Thursday, reaching towards the $2.70 level as it is a large come around, psychologically significant number, and it is of course an area that we have seen support at previously. I think that the market will continue to find sellers on rallies, so I think a bounce from here could be a nice opportunity to start shorting again. If we break down below the $2.70 level, it’s likely that we will continue to go lower, perhaps down to the $2.65 level, and then eventually the $2.60 level which is even more support. In fact, I see that as the bottom of the larger consolidation area, so I think it would take a significant amount of negativity to break down below that level, and quite frankly I don’t expect to see this market do that.

If we were to break down below the $2.66 level, then I think the market would come unraveled. At this point, I think that we continue to drift lower over the longer-term, until value hunters come back into the marketplace. In the short term, it should probably be no surprise at all if we bounce towards the $2.75 level in order to build up enough downward momentum to break through the support level and go much lower. I believe market participants will continue to look upon natural gas with negativity.

NATGAS Video 20.07.18

About the Author

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.

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