Natural Gas Weekly Price Forecast – Natural Gas Break Down Toward Support

Natural gas markets have initially tried to rally a bit during the trading week, but then broke down significantly towards the $1.60 level before showing signs of support. All things being equal, it is highly likely that we will go looking towards the lower levels, where buyers will come back into play. Quite frankly, it looks as if the natural gas market is trying to form some type of “broadening pattern”, which quite often can lead to a trend change. Having said that, there is still extraordinarily large amount of bearish pressure in this market and I do not think that is going to change quickly.

NATGAS Video 18.05.20

Bankruptcies in North America will help the natural gas markets, could send this market towards the upside as supply dwindles a bit but the demand part of the equation will continue to be a major problem. With that in mind, expect a lot of back and forth and quite frankly it is difficult to trade this market from a longer-term standpoint as there is so much in the way of uncertainty. After all, there it does become a point where the markets go too far, and they will start selling off again. I believe that we continue to see this market bounce back and forth, and the next move is probably slightly higher. Again though, you will probably be better served trading daily candlesticks instead of weekly candlesticks as the risk to reward ratio just simply is not going to be there from a longer-term standpoint quite yet. If that is to be true, the $2.00 level will more than likely offer a significant barrier.