Natural Gas Weekly Price Forecast – Natural Gas Markets Finding Support at The End of the WeekNatural gas markets initially fell during the week but did find stability towards the Friday session, as we started to reach towards a major support level.
Natural gas markets initially fell during the week, but as you can see on the chart, we did end up forming a bit of a hammer and that hammer suggests that there are buyers just below. The buyers extend from the 1.60 level to the downside, and there should be plenty of buyers all the way down to the 1.50 level. All things being equal, this is a market that I think continues to find buyers on dips, as it is a value proposition. Companies around the United States are looking to go bankrupt due to the fact that quite frankly you cannot make any money drilling natural gas and eventually that will bring down the supplies so that it can balance market forces again.
NATGAS Video 22.06.20
If we do break out to the upside, the market may go looking towards the two dollars level. That is a major barrier from a psychological and structural standpoint. In general, I believe that we are in a trading range and since we are closer to the bottom of it, it makes sense that we would rally from here. Looking at this chart, I think that it is only a matter of time before we reach back towards the two dollars level, where the 50 week EMA is starting to race towards the two dollars region again, so therefore it makes it even more crucial. Choppy behavior is what you can expect, but after five negative candlesticks in a row it looks like we are going to try to recover a bit.
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