Natural Gas Weekly Price Forecast – Natural Gas Markets Form a Hammer for the Week

Natural gas markets have gapped lower to kick off the week, and then plunged down to the $3.63 level underneath, only to turn around and form a bit of a hammer. That being said, the market is very likely to continue to see downward pressure, and I think at this point if we rally, it is very likely that the gap will come into the picture, and perhaps offer downward pressure. The massive selloff from the previous week is not something that happens in a vacuum, so I am simply looking for strength to start selling into.

NATGAS Video 13.12.21

On the other hand, if we turn around a break down below the bottom of the hammer for the week that we just printed, then the market simply falls towards the $3.00 level. In general, this is a market that I think continues to see a lot of negativity based upon the fact that the temperatures in the United States will be much milder than originally thought this winter. Furthermore, we are trading the January contract, which means we are getting towards the end of the cold temperatures of the year, lease based upon pricing.

Rallies at this point in time will continue to be selling opportunities at the first sign of exhaustion, and I believe that buying natural gas is all but done at this point in time, and therefore am simply looking for an opportunity to get short. I will not chase this market though, as it has fallen so hard as of late. The reality is that we are entering the weakest time of year.

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