Natural Gas Weekly Price Forecast – Natural Gas Markets Continue To Look For Bottom

Natural gas markets rallied after initially falling on Friday to give some credence to the idea of support in this market. The $2.00 level should be a major psychological barrier to break through, so I think that will continue to be something to pay attention to, as the natural gas markets have had a horrific winter. That being said, the market is likely to see a bit of a bounce from here, but I think it’s only a matter of time before sellers will come back in based upon what we have seen this winter. I think that longer-term traders may be able to reach towards the $2.80 level, but it is going to be very difficult to get back up there.

NATGAS Video 06.01.20

Ultimately, if we were to break down below the $2.00 level, the market would more than likely reach down to extreme lows, and at that point quite frankly I’m not even sure where we would go it would be such a massive wipe out. This is a market that should continue to see a lot of bearish pressure overall come signs of exhaustion, and at this point in time it’s likely that we will see a bit of a “dead cat bounce”, but I wouldn’t read too much more intimate than that. Natural gas continues to be oversupplied as the Americans drilled 17% more this past year than the previous one. At the same time, winter temperatures have been exactly been cold in the US or Europe.