Natural Gas Weekly Price Forecast – Natural Gas Markets Back and Forth

Natural gas markets went back and forth during the course of the week, showing a bit of choppiness in order to show just how erratic this market could be. Ultimately, I believe that the market pulls back a bit, but we are in the process of trying to find some type of bottom, especially as US companies are going to go out of business. That being said, if we were to break above the top of the shooting star from the previous week, it could go much higher, perhaps reaching towards the $2.50 level.

NATGAS Video 04.05.20

To the downside, the daily chart you can see that there is a gap near the $1.70 level, so it makes sense that it could offer support the next time around. At this point in time, the market seems to be looking at the $2.00 level as an area that will attract a lot of attention in both directions, so having said that it is unlikely that we are going to get some type of clean move. At this point in time it is difficult to imagine that the market is simply going to break in one direction or the other quite easily but it certainly looks as if we are trying to find the bottom and the fact that we are forming a bit of a broadening pattern also suggests this as well. All we need are a few bankruptcies to get people worried about supply again. That may take some time though, so keep that in mind.