Natural Gas Weekly Price Forecast – Continues to Hang Onto Support

Natural gas markets have rallied just a bit during the course of the week, but quite frankly it has been lackluster to say the least. The 50 week EMA has offered enough support to cause this market to bounce just a bit, but at this point in time I look at rallies as an opportunity to short this market. The market is oversupplied, and that is something that will continue to be a major issue. This does not necessarily mean that we are to simply come into the market and short it right away, but I think that rallies that show signs of exhaustion are opportunities to get short and wet will be a structurally weak market.

NATGAS Video 29.03.21

The temperatures in the northern part of the United States as well as northern Europe will start to rise again, and that of course is going to have a massive effect on demand when it comes to natural gas as it is quite often used for heating. All that being said, natural gas markets are massively oversupplied from a structural standpoint, so I am simply waiting for some type of exhaustion to start shorting or would be a seller if we break down below the hammer that formed during the previous week. I believe that we are going to go looking towards the $2.25 level, and then possibly even down to the $2.00 level underneath. That is an area that has significant importance attached to it, so at that point in time I would anticipate quite a bit of support, at least for the time being.

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