Natural Gas Weekly Price Forecast – natural gas hangs top for the week

Natural gas markets initially fell during the week but found enough resiliency, especially on Friday to turn around of form a bit of a hammer. We said just below the $3.00 level, an area that is not only psychologically important but structurally important as well. If we can clear that level, we could go as high as $3.10 before finding the next major resistance barrier. The alternate scenario is that we break down below the bottom of the hammer for the week, making it a “hanging man.” That would send the market back down towards the $2.70 level, an area that has been important more than once. I believe that the natural gas markets have a limited upside reach though, but then again they can’t seem to break down below the $2.60 level either. In this scenario, you should assume that the consolidation continues, at least until it doesn’t. I know that’s not the sage advice that you would hope, but quite frankly these things can last much longer than you anticipate.

I would you CFD markets, because the futures markets can be quite volatile, and at sometimes very illiquid. Use a small position sizing and add as the trade works out in your favor, either buying above the $3.00 level, or selling below the low of the week.

NATGAS Video 20.08.18