Natural Gas Weekly Price Forecast – Natural Gas Markets Find Support

Natural gas markets have initially broken down during the week, reaching down towards the $1.60 level to find support. At this point, the market turned around to form a big hammer, as we continue to find plenty of buyers just above the $1.50 level. That is a large, round, psychologically significant figure, and therefore it makes sense that it would attract a certain amount of trouble. The two point to zero dollars level above is massive resistance, so I think that as we go back and forth over the next several weeks, it is more or less going to be a short-term trader type of environment, so longer-term traders will need to see a major change in the overall situation before putting money to work.

NATGAS Video 20.04.20

If the market can break above the $2.00 level, then it’s likely that the market then goes to the $2.40 level given enough time. Ultimately, if we did break down below the lows of the $1.50 level, then it’s likely that we should go to the $1.25 level. At this point in time, I think the one thing you can probably count on is volatility and therefore the fact that we are at such low levels it’s difficult to imagine how a longer-term trader will be comfortable placing this trade. With all of this noise, you are better off being a bit of a day trader at this point, but with bankrupt companies about to implode, but that might change later this year, as the oversupply should start to get worked off.