Natural Gas Price Forecast – natural gas markets rally to end the week

Natural gas markets rally significantly on Friday reaching towards the $2.98 level. We did pull back a little bit by the time I sat down at my desk, but at the end of the day it does look very bullish. I think at this point we are probably still in consolidation, as we are testing the outer bounds of the recent consolidation. · FX Empire

Christopher Lewis

Updated Fri, Aug 17, 2018, 10:10 PM

The natural gas markets will be a bit difficult to trade in the short term, unless you look at it from a scalping perspective. I see a major amount of resistance at the $3.00 level, but at the same time it’s easy to see that the weekly candle stick is going to form a hammer, which of course is a very bullish sign. This sets up an interesting trade, because we can break down below the $2.90 level I think that this market unwinds rather drastically. Otherwise, if we can break above the $3.00 level, we may have a few more sense to go. In the short term, I think back and forth between $2.98 and $2.90 might be what we are looking at, providing plenty of day trading opportunities for those of you who have the ability to do so.

I’d use something along the lines of the stochastic oscillator or other type of oscillating indicator to help with my trading, but quite frankly I think that a range bound attitude of this market is to be expected as we approach major resistance. Eventually, we will get some type of impulsive candle that breaks out of this range that we can follow. In the meantime, you might as well take advantage of what the market is offering, meaning short-term bursts back and forth.