Natural Gas Short Term Forecast And Technical Analysis

Hi Traders! Natural Gas short term forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.

NATURAL GAS D1(Daily) Chart Analysis – Strong Resistance Zone, Bearish Convergence, Heikin Ashi Candles, ADX Indicator

On the daily chart, we have a strong resistance zone that has formed and the price which is moving higher reached this zone, respected it and bounced lower from this zone. Also, we have a bearish divergence that has formed between the first high that has formed at 3.162 and the second high that has formed at 3.199 based on the MACD indicator. The price then moved lower and broke below the last low at 2.547 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. Also, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.

 

 

 

NATURAL GAS H4(4 Hours) Chart Analysis – Strong Resistance Zone, Bearish Trend Pattern, Heikin Ashi Candles, ADX Indicator

On the H4 chart, currently, we have a strong bearish momentum and the price which is moving lower has broken below a strong support zone and is holding below it, we may consider this as evidence of bearish pressure. After the breakout, this strong support zone is acting as a strong resistance zone for us. Also, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Also, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies here as well in downward moving market conditions so it basically reflects a bearish environment. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. So the bottom line here is that, everything looks good here for the bears and I expect the price to move lower further in the short term after pullbacks until the strong resistance zone (marked in red) shown in the image below holds.

 

 

Technical Analysis & Forecast Summary

NATURAL GAS D1(Daily) Chart Analysis 

• Strong Resistance Zone, Bearish Convergence, Heikin Ashi Candles, ADX Indicator

NATURAL GAS H4(4 Hours) Chart Analysis 

• Strong Resistance Zone, Bearish Trend Pattern, Heikin Ashi Candles, ADX Indicator

 

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