forex advisor developer

Natural Gas Price Outlook: Signals & Levels to Consider – Nat Gas Technical Analysis

Natural Gas Technical Forecast

  • Natural gas prints its lowest level in over two decades
  • Signals and levels to keep in focus.

Natural Gas Price – Bears Are Back

On March 11, natural gas rallied above $.2.000 threshold then retreated after. Nevertheless, on Friday the price closed the weekly candlestick in the green with 9.2% gain. Yesterday, bears took charge and pressed the market to $1.583 – its lowest level in nearly 25 years.

The Relative Strength Index (RSI) crossed below 50 highlighting a possible recovery of stalled downtrend momentum.

Nat-Gas DAILY Price CHART (Jan 23, 2019 – Mar 19, 2020) Zoomed Out

Natural gas daily price chart 19-03-20 zoomed out

Recommended by Mahmoud Alkudsi

Traits of Successful Traders

Get My Guide

Natural Gas DAILY Price CHART (Jan 22 – Mar 19, 2020) Zoomed IN

Natural gas daily price chart 19-03-20 zoomed in

Looking at the daily chart, we noticed at the start of this week natural gas has declined then closed below the 50-day average then remained below this indicator providing a bearish signal. Later on, the market moved to a lower trading zone $1.760- $1.655.

A close below the low end of the zone may convince bears to press towards $1.430. Further close below that level could send the price even lower towards $1.248. That said, the weekly support area and level marked on the chart should be watched closely.

In turn, a close above the high end of the zone reflects bears reluctance. This might lead some to exit the market causing natural gas to surge towards $1.902. Further close above this level could extend the rally towards $2.033. In that scenario, the daily resistance levels underscored on the chart should be considered.

Building Confidence in Trading

Building Confidence in Trading

Recommended by Mahmoud Alkudsi

Building Confidence in Trading

Get My Guide

Natural Gas price Four-Hour PRICE CHART (Mar 10 – Mar 19, 2020)

natural gas four hour price chart 19-03-20

From the four- hour chart, we noticed that last week natural gas peaked at $2.020 then started a downtrend move creating lower highs with lower lows. Additionally, the price remained trading below the downtrend line originated from the March at $1.969. Thus, any violation to this line would possibly cause a rally towards the $1.900 handle.

Thus, a break above $1.800 could lead natural gas towards $1.900. Although, the daily resistance level underlined on the chart should be monitored. On the flip-side, any break in the other direction, i.e. below $1.550 could press the market towards $1.430. Yet, the psychological level printed on the chart should be kept in focus.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi