Natural Gas Weekly Price Forecast – Natural Gas Markets Fail at Major Level

Natural gas markets rallied a bit during the trading sessions that made up the week, but as you can see the $2.00 level, we have a lot of selling pressure. We ended up forming a massive shooting star, which of course is a negative candlestick. The fact that we are sitting here at the round figure of two dollars, only adds more sense of bearish pressure. With that in mind I believe that the markets will continue to offer plenty of opportunities to short natural gas, but if we were to break above the top of the shooting star candlestick, that’s obviously a very bullish sign and could open up a move towards the $2.50 level over the longer term.

NATGAS Video 27.04.20

Having said all of that, this is an area that is going to find a lot of resistance so it is hard to believe that we will simply just breakout to the upside. If you are a longer-term “buy-and-hold” type of trader, you may be able to get an opportunity to go long natural gas at lower levels. If that is going to be the case, then I would be looking for signs of a bounce on the daily chart in order to take advantage of a slew of bankruptcies that are coming. If we do get enough bankruptcies, we could possibly see some of the oversupply come to an end, but I would not hold my breath in the short term. This is a market that may eventually rally, but the 200 week EMA above will more than likely be the ceiling.