Natural Gas Weekly Price Forecast – Natural Gas Has Horrific Week

Natural gas markets have had a very rough week, breaking down towards the $2.25 level on Friday. This is a market that will continue to see a lot of volatility and a lot of choppiness, as we head into the colder months of the year for the northern hemisphere. Demand should pick up, so it is probably only a matter of time before the buyers show back up again. With that being said, I do believe that this is a market that will continue to be very noisy to say the least, because we have so many different cross currents going on at the same time. Not the least of which is the seasonality, but we also have to worry about the bankruptcies, the falling US dollar, and a whole host of other situations including global growth, or the lack of.

NATGAS Video 14.09.20

In other words, this is not going to be a clean move regardless, and I do think that we continue to see a lot of difficult trading ahead. However, the $2.00 level underneath I think is going to be a very significant floor in the market due to the fact that it was such a massive breakout previously. With all that being said, I am looking to buy the dips but obviously you need to see some type of supportive action, perhaps on shorter time frame in order to start getting long again. The market is very likely to be noisy for the next week or two, but I do anticipate that we will revisit the highs again, perhaps even testing the $3.00 level.

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