Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Natural Gas Price Forecast: Nat Gas Chart Points Out a Reversal Pattern

Natural Gas Price Forecast: Nat Gas Chart Points Out a Reversal Pattern

Mahmoud Alkudsi, Analyst

Natural Gas Technical Outlook

  • Stalled Bearish momentum
  • Nat gas price, Signals and Levels to consider

Natural Gas – Bears Hold Fire

On Friday, natural gas rebounded from its lowest level in two weeks at $1.816 then closed the weekly candlestick in the red with 1.1% loss. This week, the market opened with a gap to the upside then rallied as some shorts seemed to cover.

Last week, the Relative Strength Index (RSI) remained flat below 50 highlighting paused downtrend momentum.

Nat-Gas DAILY Price CHART (JUL 15, 2018 – FEB 6, 2020) Zoomed Out

Natural Gas Price Forecast: Nat Gas Chart Points Out a Reversal Pattern

Nat-Gas DAILY Price CHART (Nov 27 – FEB 6, 2020) Zoomed IN

Natural Gas Price Forecast: Nat Gas Chart Points Out a Reversal Pattern

Looking at the daily chart, we notice on Jan 27 natural gas reversed to a lower trading zone $1.819 - $1.915. Later, the price rebounded in multiple times around the low end of the zone reflecting bear’s hesitation.

A close below the low end may end this hesitation and encourage bears to press towards $1.700. Further close below this level could cause more bearishness towards $1.643. That said, the weekly support levels underlined on the chary (zoomed in) should be considered.

In turn, a close above the high end of the zone could lead some bears to exit the market. This may send the price towards $2.034. Additionally, any break above the neckline of double bottom pattern located at $1,959 could cause a rally towards $2.069.

Natural Gas price Four-Hour PRICE CHART (DEC 29 – FEB 6, 2020)

natural gas four hour price chart 06-02-20

From the four- hour chart, we noticed on Jan 19 natural gas printed $1.815- its lowest level in nearly four years. Since then, the markrt stuck in sideways move.

A break above the Jan 23 high at $1.957 could cause a rally towards $2,034. Although, the psychological resistance level at $2.000 should be watched closely. On the flip side, a break below $1.771 may resume bearish price action towards $1.700. Nevertheless, the weekly support level underscored on the chart would be worth monitoring.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES