Natural Gas Weekly Price Forecast – Natural Gas Forms Support Candle

Natural gas markets have fallen a bit during the course of the trading week, to drift below the $2.50 level for a moment. However, we have turned right back around to form a somewhat supportive looking candlestick, and therefore I think at this point we have to look at the idea of the natural gas markets as being a bit oversold. A bounce from a large round figure like the $2.50 level makes quite a bit of sense, so I am simply looking to fade the market at the first signs of exhaustion. This exhaustion could take a couple of weeks, but quite frankly at this time of year I more than patient enough.

NATGAS Video 22.03.21

On the other hand, if we break down below the bottom of the candlestick for the week then I think we will probably take out the low that we made about a month ago and continue towards the $2.00 level. If we do rally, then I anticipate that the $3.00 level is probably about as far as we can go before gravity takes effect. After all, temperatures in the United States are starting to warm up right along with Europe, therefore the demand for natural gas is going to plummet. With that being the case, it makes no sense to get long of this market at this juncture.

For what it is worth, the 50 week EMA sits just below, but it is relatively flat so I think that the market will probably be okay with slicing back and forth through it and therefore I think that it only has so much effect.

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