Natural Gas Weekly Price Forecast – natural gas hangs top for the week

Natural gas markets initially sold off during the week but turned around of form a bit of a hammer. The hammer is pressing up against the $3.00 level, an area that has been important more than once. It is because of this that I think we may have a little bit further to go to the upside. However, there are a couple of potential signals here. · FX Empire

Christopher Lewis

Updated Fri, Aug 17, 2018, 10:34 PM

Natural gas markets initially fell during the week but found enough resiliency, especially on Friday to turn around of form a bit of a hammer. We said just below the $3.00 level, an area that is not only psychologically important but structurally important as well. If we can clear that level, we could go as high as $3.10 before finding the next major resistance barrier. The alternate scenario is that we break down below the bottom of the hammer for the week, making it a “hanging man.” That would send the market back down towards the $2.70 level, an area that has been important more than once. I believe that the natural gas markets have a limited upside reach though, but then again they can’t seem to break down below the $2.60 level either. In this scenario, you should assume that the consolidation continues, at least until it doesn’t. I know that’s not the sage advice that you would hope, but quite frankly these things can last much longer than you anticipate.

I would you CFD markets, because the futures markets can be quite volatile, and at sometimes very illiquid. Use a small position sizing and add as the trade works out in your favor, either buying above the $3.00 level, or selling below the low of the week.