Natural Gas Weekly Price Forecast – Natural Gas Markets Continue To Struggle

Natural gas markets have rallied a bit during the week, reaching towards the $1.90 level before giving up gains. By forming the inverted hammer, it could suggest that we could have a significant move rather soon, but I think the thing to take away from this chart is essentially that we are going to continue to see plenty of selling pressure. The $2.00 level of course is an extraordinarily resistive area, so I do think that we are simply going to fade this market going forward. If we were to break above the $2.00, then it’s likely that the market could go towards the $2.20 level which is the 50 week EMA.

NATGAS Video 13.04.20

Beyond that, if the market continues to see oversupply of natural gas, and at this point it seems very unlikely that it would change, then rallies will continue to be sold into. You probably need to do this on shorter-term charts though, because there isn’t simply enough of a risk to reward ratio when it comes to the weekly chart as we are at such low levels. If we break down below the $1.50 level, it would be catastrophe just waiting to happen. At this point, I don’t think that the market has too much more room to the downside, so to simply sell in a hold would be a bit difficult. Ultimately, the market has been consolidating between $2.00 on the top and $1.60 on the bottom, showing a lot of choppy behavior in general, but we are in a downtrend so that’s how I approach this market.