Natural Gas Weekly Price Forecast – Natural Gas Continues to DeclineNatural gas initially tried to rally during the week, but then broke down below the $2.20 level. That being said, it looks like it could drop even further.
Natural gas markets initially tried to rally during the course of the week but gave back the gains to show signs of weakness. It looks as if we are ready to continue going lower and try to fill the gap on the weekly chart that could send the market down towards the $2.56 level. At this point, the market is likely to continue to see selling every time it tries to rally, as warmer temperatures are starting to come back into the northern hemisphere, and that will drive down demand drastically. At this point, I believe that we are eventually going to go looking towards the $2.35 level, and perhaps even break down below there. If we were to break down below that level, then we could see this market go down towards the $2.00 level.
NATGAS Video 08.03.21
Rallies at this point will probably show a significant amount of resistance above at the $3.00 level, and therefore I do not think that we will get above there again. I am more than willing to sell this market every time it gets near that area, and I do think that buying is all but impossible until we get closer to the cold temperatures of next winter. We have seen a significant amount of damage to the supply down with the freezing temperatures in the central United States, but that is in the rearview mirror so supply should come back into the marketplace and overwhelm any idea of buying. I like the idea of shorting this market every opportunity that I get and will add to my position.
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