Natural Gas Weekly Price Forecast – natural gas gains again

Natural gas markets initially fell during the week but then turned around to rally towards the $2.95 level. We have found some resistance there, but I think the major resistance is closer to the $3.00 level above, an area that I think will bring in a lot of fresh selling. That being the case, I believe that the market participants are looking at another week of bullish pressure at best, before the oversupply of natural gas comes back into effect. Remember, fracking companies in the United States for the most part are profitable at the $3.00 level, so that has been a bit of a lid on the market.

I would zoom down to the daily chart, look for an exhaustive candle to start selling as close to the $3.00 level as possible. That resistance runs all the way to the $3.10 level above, so you need to give yourself a little bit of room for stops. In the short term though, we will probably rally a bit to go test the $3.00 level, as it will be to juicy of a target for traders to ignore.

I would expect a lot of volatility, but we are starting to head out of the hottest month in the United States, so that may drive down some demand as well. Beyond that, if there’s a global slowdown, that should be poor for energy as well, which of course includes natural gas.

NATGAS Video 13.08.18