Natural Gas Weekly Price Forecast – Natural Gas Forms Neutral CandlestickThe natural gas markets went back and forth during the week, trying to reach above the $3.00 level. That being said, we have seen resistance in that vicinity.
Natural gas markets went back and forth during the trading week, essentially settling for a neutral candlestick. This was preceded by a shooting star, and therefore I think that we should see sellers jump into this market. Beyond that, the market is likely to see some type of selling pressure due to the fact that the natural gas markets are going to have to deal with the warmer temperatures coming in about a month, and of course the futures market that we are trading right now is focusing on the month of March, so even though there are cold temperatures in the short term, longer-term the fundamentals do work against the value of natural gas.
NATGAS Video 15.02.21
To the downside, we could go as low as $2.30 and simply be consolidating from the previous move. However, I think all things being equal it is a market that will continue to be one that I look at with skepticism, due to the fact that we have a massive oversupply of natural gas, and although we will get the occasional burst higher in price, the reality is that the oversupply of natural gas will continue to be a major problem.
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Because of this, the market is likely to see a lot of choppy behavior, but I do believe that the sellers will then continue to be aggressive on the first signs of warming temperatures, and as we rollover into the next contract, we will begin to focus far beyond the short-term storm that we are seeing in the northeastern part of the United States that has caused so much bullish pressure.
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