Natural Gas Weekly Price Forecast – Natural gas markets finding support

Natural gas markets broke down a bit during the trading sessions that made up the previous week, but as you can see we turned around to break higher. The inventory number wasn’t quite as bearish as one may have thought it would be, and now it looks as if we are trying to bounce enough to at least try to save the overall consolidation area. Obviously, the $2.50 level is psychologically important, and if that continues to be the case, then it’s likely that we could go towards the $2.60 level, and then possibly the $2.70 level.

NATGAS Video 29.04.19

Looking at the chart, it looks as if there is a bit of a relief rally coming, but keep in mind that the bearish pressure has been constant, and therefore as we are in the wrong time a year for bullish moves, any rally at this point will be short-lived. If you are a longer-term trader, you are probably going to be waiting for exhaustion above. Shorter-term traders may take advantage of this though, just as a longer-term trader could possibly take advantage of a break of this past week to the downside. That can open up the door to the $2.25 level, which is historically important as well. All things being equal, this is probably more of a short-term traders type of environment, because we are so far oversold at this point that it’s difficult to imagine a scenario where it’s going to be easy to simply sell right away.

Please let us know what you think in the comments below