Natural Gas Weekly Price Forecast – Natural gas markets break major support

Natural gas markets initially tried to rally during the week but then turned around and fell hard. We been watching this level for some time, and now that we have broken through it, there’s a lot of things to pay attention to.
Christopher Lewis
Natural gas weekly chart, June 06, 2019

The natural gas markets initially tried to rally during the week, but then turned around to show signs of weakness yet again. Now that we have broken below the $2.50 level, it’s assigned that the market will continue to find a lot of selling pressure. Rallies at this point are to be sold, but I think it’s difficult to hang onto it for a longer-term position due to the fact that we are at such low levels.

NATGAS Video 03.06.19

Now that the $2.50 level has been broken, it’s very likely that the $2.25 level would be targeted due to historical precedents. Below there, we could go down to the $2.00 level as well. I have no interest in buying natural gas and quite frankly wish it would’ve bounced a bit more so I can continue to short this market.

Looking at the longer-term outlook for the natural gas markets, you should keep in mind that there is a certain amount of negativity during this timeframe anyways. All things being equal, I think that the market will continue to fall so I like selling these rallies but I would probably favor something to the effect of a daily chart than a weekly, unless of course you can ride out the certain volatility that you will see in this market. If we are in fact looking at a global slowdown, it’s very likely natural gas demand will fall beyond the lack of demand for heating in the northern hemisphere until the month of November.

Please let us know what you think in the comments below

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