Natural Gas Price Forecast – natural gas markets take off on Tuesday

Natural Gas Price Prediction – Prices Slip Following Soft Manufacturing Data · FX Empire

Christopher Lewis

Updated Tue, Jul 31, 2018, 10:44 PM

Natural gas markets have rallied rather significantly during the trading session on Tuesday, gaining roughly 1% by the time the Americans took over. The $2.85 level of course is psychologically important, and there has been a bit of noise in this area recently. However, I think it’s only a matter of time before buyers come in on dips looking for value. The reason I say this is that the longer-term charts dictate that the $2.70 level below is supportive, while the $3.00 level above is resistant. In fact, we have been consolidating in this range for a while, and I would anticipate that we will simply make a return to the other side. Granted, the $2.85 level is essentially the “fair value” area in this consolidation range, but it takes a certain amount of wherewithal to clear that area and then have the buyers take over completely. I think we are about to see that but may have to drift down towards the $2.78 level.

Ultimately, this is a market that I think will continue to stay within the range for the foreseeable future, and as we have recently bounce from the lows, it makes sense that we go looking towards the tops again. In general, the market continues to be very noisy, but that’s nothing new to anyone who has traded this market in the past, as it tends to focus on short-term scenarios and whether in the United States. Technically speaking though, I think we continue to see buyers.