Natural Gas Weekly Price Forecast – natural gas chops around again during previous week

The natural gas markets continue to struggle with lofty levels, forming the second neutral candle in a row. As the market is getting very close to major resistance, this is not very surprising at all. Recently, we have seen this market consolidate overall between the $3.00 level just above, and the $2.70 level below. I think at this point, we are priming ourselves for a move.
Christopher Lewis
Natural gas weekly chart, August 27, 2018

Natural gas markets went back and forth during the week, closing near the middle of the range, showing indecision to say the least. I believe that the market is going to continue to struggle overall, with the $3.00 level offering a bit of trouble. However, I think that it is only a matter of time before we need to make a decision, and at this point I think it’s a fairly simple one: we should be buyers above the $3.00 level, and sellers below the $2.90 level. I suspect that the hesitation leads to more selling than buying in the future, but at this point in time that is just a guess. However, it’s an educated guess based upon previous action, which is the essence of technical analysis anyway.

If we were to break down below the $2.90 level, then I think the market will probably head back to the $2.80 level, and eventually the $2.70 level after that. That level should repeat this cycle of value hunting, and therefore cause a bounce. Until we break out of this range, most people have found it profitable to go back and forth, and I don’t see that changing at this point. Remember, this pair is extraordinarily short term focused, and pays significant amount of attention to the inventory number on a week to week basis.

NATGAS Video 27.08.18

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