Natural Gas Weekly Price Forecast – natural gas markets continue to show weakness
Natural gas markets fell during the week, reaching down towards the $2.75 level. This is the major support level that I have marked on the chart, that I think it extends to much lower levels. That being said, we have fallen so hard that I think it’s only a matter time before we get a bit of a bounce.
Natural gas markets have fallen again during the week, gapping lower to kick it off, and then reaching towards the $2.75 level. That’s an area that has offered support previously, but I think that support extends all the way down to the $2.50 level. With that being the case, I think there is plenty of support and therefore I wouldn’t be looking to short this market. Rather than try to fight this major area, I think you are simply better served waiting for a much easier opportunity.
NATGAS Video 04.02.19
That being the case, if we can rally from here, then I would be looking for some type of exhaustive candle that I can start shorting. The three dollars level is the initial resistance, but quite frankly I would rather see the market reached towards the $3.25 level, maybe even the $3.50 level. Any signs of weakness at a higher level is reason enough to short, but we have fallen so far that I think shorting here is very reckless, especially from a longer-term perspective. For what it’s worth, the Friday candlestick is a bit of a hammer so we may get that bounce rather quickly. For the longer-term trader, you are probably going to need to wait a couple of weeks to get involved and start shorting again. Buying at this area, although possible, is probably very dangerous.
