Natural Gas Weekly Price Forecast – Natural Gas Forms Quiet Candle
Natural gas markets have gone back and forth during the course of the week, as we are trying to figure out what we are going to do next. That being said I think it is only a matter of time before we go lower due to the cyclical trade, as the demand for natural gas will drop with the warmer temperatures. At this point in time, I think that we are looking at a “fade the rally” type of market that will continue to attract me every time we see a long wick to the upside.
NATGAS Video 05.04.21
The uptrend line that I have marked on the chart could kick off more selling, perhaps reaching down towards the $2.25 level next, followed by the $2.00 level which I expect to hit some time during the middle of summer. If we do break to the upside, then I anticipate that the $2.80 level and the $3.00 level both offer massive amounts of resistance that the market will have difficulty breaking above. That being said, on a smaller timeframe you can make out a bearish flag, so that in and of itself tells me that we are very likely continuing to the downside.
In the short term, the temperatures in the United States have fallen, but at this point in time it is likely that warmer temperatures are what most traders will be paying attention to. The supply of natural gas continues to be a major problem for pricing, so any time it rallies I am sure there will be plenty of people out there looking to dump it into the market and push price back down.
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