Natural Gas Weekly Price Forecast – Natural Gas Markets Form Resistive Candle

The natural gas markets have been very noisy during the week, as we continue to see the $3 level offer problems for the bulls. Keep in mind that the markets are likely to continue to see the commodity boom happen, as the reopening trade is firmly in the attitude of the overall markets. The natural gas market continues to see a little bit of a lift due to the other markets, but quite frankly natural gas is a little bit different in the sense that it is overabundant as far as supply is concerned. Because of this, I think that we are likely to roll over in this general vicinity, and if we can break down below the bottom of the candlestick it is very possible that we could go looking towards the $2.50 level.

NATGAS Video 24.05.21

Alternately, if we break above the top of the candlestick for the week, then we could go looking towards the $3.25 level, but I do not think that happens easily. This is especially true as temperatures continue to rise in Europe and North America. This should have the commodity falling in price as demand will drop off. That is the cyclical trade that we typically follow, and therefore I think it makes quite a bit of sense that we would drop. All things been equal, I do not have any interest in trying to get too cute with this market, and I simply want to sell when it shows signs of weakness. With this, I am ignoring all buying opportunities from a longer-term standpoint until at least October.

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