Natural Gas Weekly Price Forecast – Natural gas markets continue to fall

Natural gas markets initially tried to rally during the week but gave back the gains to roll over and reach towards the $2.68 level. At this point, we are getting relatively close to the support level that starts at the $2.60 level and extends down to the crucial $2.50 level. To the upside, we still have significant resistance in the form of the $2.90 level that extends to the $3.00 level. That being the case, I think we simply go back and forth and continue to see a lot of sideways action.

NATGAS Video 01.04.19

With all of that in mind I am more than willing to buy this market at a lower level closer to the $2.60 level once we get some type of supportive candle stick. You may have to look to the daily chart to get the signal, using the weekly chart as an idea of the boundary that we are trading in. Overall though, I would be the first person to start selling in general on signs of weakness, because I do feel that the oversupply of natural gas is the biggest problem. To the downside though, there is enough support at the $2.50 level that I don’t think it’s going to break down and slice through there. I believe that the $2.50 level will be crucial for the time being, and perhaps the rest of the year as this range has been very reliable for quite some time. Expect choppiness, but if you are patient you can buy and sell at the crucial levels.

Please let us know what you think in the comments below