Natural Gas Weekly Price Forecast – Markets Break 200 Week EMA

As the hurricane rip through the southeastern part of the United States, there were a lot of fears as to whether or not the natural gas supply was going to be completely interrupted. It turns out that the damage was not as bad as thought, so I think at this point in time it is only a matter of time before the buyers come back in on pullbacks due to a multiple amount of reasons. A breakdown below the $2.50 level could open up a move down towards the $2.25 level, an area where I expect to see a lot of buyers.

NATGAS Video 31.08.20

In fact, I think that all the way down to the $2.00 level there is the possibility of buying natural gas, but I would let it come back to me at this point in time because it is gotten so far ahead of itself. Longer-term, it is likely that the market could go to the $3.00 level, a large, round, psychologically significant figure, and a barrier that we have seen more than once.

All things being equal though, when you look at the weekly chart it is easy to see that we are a bit overextended, so you need to find value in a market that has been overdone. You cannot jump in and start buying at the absolute highs, that is a rookie mistake, something that is punished in losses. Quite a bit of patience is needed to deal with this type of market, but if you are patient enough you should be able to find value underneath. At this point I have no interest in shorting although I fully anticipate that we will pull back.

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