Natural Gas Weekly Price Forecast – Natural gas markets find support

Natural gas markets fell during the course of the week, reaching down to the $2.75 level before bouncing a bit. By forming a hammer, it shows that there are hints of bullish pressure, but I think that given enough time we will continue to see a lot of negativity as natural gas is far too oversupplied. With that in mind, I prefer selling this market but we clearly don’t have a decent signal at the moment on the weekly chart. I would wait until we got a little closer to the $2.90 level to sell signs of weakness as they appear, understanding that the zone probably runs all the way to the $3.00 level above.

NATGAS Video 18.03.19

Above there, we have the 200 day EMA pictured in blue on the chart, which of course will attract a lot of attention in and of itself. With that, I am looking to take advantage of the long-standing range, but I also recognize that if we break down below the candle stick for this past week, that would be an extraordinarily negative sign and could send this market much lower. Ultimately, I am bearish and simply waiting for an opportunity to sell natural gas. I have no interest in buying it, as we are starting to head out of the seasonally strong time of the year. As temperatures heat up in the United States, it will drive down quite a bit of demand. Beyond that, there are concerns about global demand for power in general as the economy around the world tends to look soft pretty much everywhere I look.

Please let us know what you think in the comments below