Natural Gas Weekly Price Forecast – Natural Gas Continues to Show Signs of WeaknessNatural gas markets initially tried to rally during the week but did give back quite a bit of the gains to form an inverted hammer, which of course is a very negative sign.
Natural gas markets initially tried to rally during the week but gave back the gains to turn around and form a bit of an inverted hammer. The $1.70 level looks to be rather resistive, and as a result it’s likely that the market is going to continue to drop down towards the $1.50 level. With this, I like the idea of fading short-term rallies, and longer-term traders are still going to have to look for “value” when shorting this pair. What I mean by this is that you need a rally to get involved. Selling down here, although possible, isn’t going to be as bright of a move as it could be. I believe that the $2.00 level above is massive resistance, so the closer we get to that level the more interested I am in shorting.
NATGAS Video 30.03.20
I would also point out that the $1.80 level is an area that has also offer plenty of resistance. We are in a downtrend, so at this point I like the idea of shorting every time we get an opportunity. I do believe that this point in time is an opportunity to sell any time it shows signs of strength. Quite frankly I don’t see natural gas picking up any serious demand anytime soon, not only because of the time of year but the fact that some of the world’s largest economies are essentially locked down right now. That equals less demand, in a market that is so overly supplied it isn’t even funny at this point in time. I remain very bearish but recognize we are at extreme lows.