forex advisor developer

Natural Gas Price Forecast: Will Bears Give Up Control?

Natural Gas Technical Outlook

  • Bears ease up yet, still in charge
  • Signals and levels to monitor.

Natural Gas Price – At its Lowest in Over two Decades

On March 18, natural gas tumbled to $1.583- its lowest level in nearly 25 years. Later on, the market rallied as some bears seemed to cover. Yet, the price closed the weekly candlestick in the red with 14.1% loss.

This week, the Relative Strength Index (RSI) rose from 38 to 45 highlighting weaker downtrend momentum.

Nat-Gas DAILY Price CHART (Jan 23, 2019 – Mar 26, 2020) Zoomed Out

Natural gas daily price chart 26-03-20 zoomed out

Recommended by Mahmoud Alkudsi

Traits of Successful Traders

Get My Guide

Natural Gas DAILY Price CHART (Jan 22 – Mar 26, 2020) Zoomed IN

Natural gas daily price chart 26-03-20 zoomed in

Looking at the daily chart, we noticed that on March 17 the market failed to overtake the 50-day average and remained below. Additionally, natural gas slipped to a lower trading zone. This week, the price climbed back to current trading zone $1.566 – $1.760.

Yesterday, the market tested trading above the high end of the zone then reversed its direction indicating that bears may come back. Thus, a close below the low end of the zone could encourage bears to press towards $1.430. Yet, the monthly support area marked on the chart (zoomed in) should be kept in focus.

On the flip-side, any close above the high end of the zone highlights bears hesitation. This may lead some of them to exit the market allowing natural gas to rally towards $1.902. Further close above that level could push the price even higher towards $2.033. In that scenario, the weekly resistance levels and area underscored on the chart should be monitored.

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 6 – Mar 26, 2020)

natural gas four hour price chart 26-03-20

From the four- hour chart, we noticed that yesterday the market paused its downtrend move as created a high with a higher high at $1.777 causing a sideways move.

Thus, a break below $1.550 could send natural gas towards $1.430. Although, the psychological level underlined on the chart should be considered. In turn, a break above $1.800 may cause a rally towards $1.900. Nevertheless, the daily resistance level underlined on the chart should be watched closely.

See the chart to find out more about the key technical levels to keep in mind in a further bullish/bearish scenario.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi