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