Natural Gas Weekly Price Forecast – natural gas markets choppy for the weekNatural gas markets continue to be very choppy during the week, as we have drifted as low as $4.25, only to find buyers come back.
Natural gas markets went back and forth during the week, drifting down to the $4.25 level, before bouncing significantly in forming a bit of a hammer. While this is a bullish candle stick, the reality is that there is significant resistance above, and there is a bit of a short-term downtrend line. I think at this point the $5.00 level will continue to offer a lot of resistance, and I more than willing to sell signs of exhaustion. I also believe that the seasonality of natural gas will continue to be a driver in the short term to the upside, but I think it’s only a matter of time before we roll over.
NATGAS Video 10.12.18
Natural gas markets are a bit skittish this time a year, with a slightly upward bias due to the fact that temperatures in the United States will be very cold. However, given enough time I think we can start to sell off, especially once we get to the Spring contracts. Quite frankly, there’s far too much natural gas in the United States for high prices the last very long. I believe that the market will take a massive nosedive given enough time, but that’s typically right after New Year’s Day. In the short term, I’m looking for selling opportunities on rallies, and I don’t have any interest in buying this market. If we did break above the $5.00 level, that would be an extraordinarily strong sign. I don’t think that happens though, at least not without some type of major headline.