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Natural Gas Weekly Price Forecast – Natural Gas Markets Find Support

By:
Christopher Lewis
Published: Apr 17, 2020, 16:40 UTC

Natural gas markets fell significantly during the course of the week, finding quite a bit of support eventually before turning around and forming a bit of a hammer. That being said, it’s likely that the market is trying to carve out a range.

Natural Gas

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.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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