Natural Gas Weekly Price Forecast – Continue to Find Sellers Above

Natural gas markets have tried to rally a bit during the course of the week but gave back the gains near the $2.80 level. We have not quite formed a shooting star, but it certainly suggests something similar. Ultimately, we are getting close to the warmer time of year that will cause demand for natural gas to plummet overall. That being said though, the market will continue to look at the possibility of stimulus pushing demand higher, but at this point in time there is so much out there in the way of supply that it is difficult to imagine that natural gas will simply take off to the upside for a bigger move. All things being equal, this is a market that I think will offer selling opportunities given enough time.

NATGAS Video 18.01.21

As we roll into the spring, the market is likely to go looking towards the $2.25 level, possibly the $2.00 level underneath. That is an area that previously had been resistance, so it should be supported, not only do to that, but the fact that it is a large, round, psychologically significant figure. Furthermore, we have the 200 and the 50 week EMA indicators slicing through this general vicinity that we are at right now, so I think that causes a little bit of technical noise to begin with.

I have no interest in buying natural gas, at least not this time a year as we are in the wrong part of the year to expect massive amounts of demand. After all, we are already trading the February contract, and it is only a couple of weeks before we roll over to the March contract.

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