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

Reading the intro paragraph, could give the impression that I think that buying natural gas is possible. I would be remiss to suggest that it is, and I believe that what we are simply going to see is some type of short-term bounce. That short-term bounce should give us an opportunity to sell this market at a higher level, building up a bit of inertia to the downside. Remember, once we broke down below the $2.50 level it was as if a trap door had opened up in the market. Now that we are below that level I believe that the market is probably going to go looking to the $2.25 level, possibly even the $2.00 level after that.

NATGAS Video 10.06.19

To the upside, if we break the $2.50 level I also see that the $2.60 level is massive resistance. This time of year is very negative for natural gas as it is one of the most cyclical commodities out there. That being said, we should get an impressive bounce later this year as we are at such a low level. Between now and then though, it’s simply a matter of selling rallies as they show signs of exhaustion, which unfortunately will probably be on the daily charts. The longer-term trader that’s going to try to take advantage of the weekly chart may have to wait until later on in the year, perhaps sometime near October or even November.

Please let us know what you think in the comments below