Natural gas price forecast

While the Natural gas prices tried to move higher on Tuesday they were unable to break the resistance level of 194.50 INR. Support is seen at 10-day average around 185 levels.

Despite the Inventory levels remain near the lower end of the 5-year range according to the Department of Energy, there was not much rise in the market. Most traders now are waiting for ISM manufacturing report which will describe potential manufacturing driven demand and Thursday’s inventory report from the EIA.

Trading tips
Natural gas -

While momentum is positive and the charts shows a positive momentum, there is an oversold condition arising in near future. A break above resistance could bring a correction in the market.

Ultimately, I think the market will continue within this range for few weeks but it does make sense to see a bounce from these levels. I see the market might go upward towards the top again. In general, NG market would be volatile and this is not new for these markets.

I would suggest initiating a buying position at dips around 187 with a positional target of 198-205 and Stop Loss of 184.50. For Intraday traders, we could see a buy at 189 with target of 193 SL 184.50