Natural Gas Weekly Price Forecast – Natural Gas Continue to Show Buyers Underneath

Natural gas markets have broken down a bit during the week but found support near the 50 week EMA to turn around and show signs of life again. By showing the type of candlestick we have, it is likely that we could go looking towards the 200 week EMA which is closer to the $2.58 level. Natural gas is getting a bit of a boost from a “W pattern” underneath, which is essentially the same thing as a “double bottom.” I believe at this point it is likely to be a recovery that we see going forward, as the massive amount of bankruptcies out there should continue to drive this commodity higher. Furthermore, the US dollar continues to fall in value and that will push this market higher.

NATGAS Video 17.08.20

Beyond that, we are starting to reach towards the cold months, and it suggests that we are going to find more demand out there when it comes to natural gas in order to heat homes. It has also been a relatively hot summer in the United States so that helps as well. I had previously been talking about a potential bottoming pattern, it seems as if we have in fact found that. Pullbacks should continue to be bought into in the meantime as we go looking towards higher levels. This point time, it looks like we will continue to see a lot of choppiness, and therefore it is obvious that the market will continue to be very noisy in general, but like it is ready to go higher in general.

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