Natural Gas Weekly Price Forecast – Natural Gas Markets Continue Sideways DisruptionNatural gas initially tried to reach above the $2.00 level but then rolled over about $0.25 by the time we got done.
NATGAS Video 01.06.20
Natural gas markets initially tried to rally during the trading week but found the $2.00 level to be far too much in the way of resistance. That is an area that I think continues to be remarkably interesting to traders, but ultimately this is a market that looks as if it is trying to find some type of bottoming pattern. At this point, I think that we are likely to see a move down towards the $1.60 level before the buyers start to return.
It is difficult to deal with this type of action from a longer-term standpoint, simply because there is so much in the way of choppy behavior. Having said that, there is a lot of support underneath at the $1.50 level from a longer-term perspective as well, so I think we are in the process of at least trying to form some type of bottom, but the question is whether or not it can hold. I do not anticipate much in the way of momentum either way, so I would probably lead you towards the daily charts more than anything else.
If we break above the $2.13 level, which is the 50 week EMA, then obviously that would be a major shift in attitude as it is a large technical barrier. Breaking above there allows the market to go looking towards the $2.50 level. We need to see economies opening up a driving up demand in order to drive natural gas price higher. So far, it has been lackluster, but we should get plenty of bankruptcies to help as well.
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