Natural Gas Weekly Price Forecast – Natural Gas Markets Form Support Of CandleThe natural gas markets went back and forth during the week, showing signs of stability just above the crucial $2.20 level.
Natural gas markets finally got a bullish inventory figure during the week, showing signs of life again. After all, there has been an oversupply of natural gas for ages, and with the Americans producing 17% more natural gas during this past year, it makes sense that natural gas has struggled in general. Ultimately though, the $2.20 level looks to be very supportive and therefore I think it’s only a matter of time before buyers will jump in and try to push higher. I see the $2.50 level is a major barrier though but could open up the door to the $2.85 level and then eventually the $3 level. That being said, natural gas is probably going to have a significant number of headwinds above, so what I am banking on is a short-term pop higher.
If we can get some type of massive spike, then it opens up for a nice shorting opportunity down the road. Natural gas has been miserable this winter, and therefore it’s likely that the remainder of next year is going to be even worse. After all, if we can’t choose through enough supply in the busiest time of year, it’s going to be absolutely horrible next year. With that being said, the market is likely to continue to see very difficult if we do not get the balance that’s necessary. Quite frankly, one of the easiest ways to play this market might be in the stock market down the road as natural gas markets are going to get ugly if we can’t get a massive rally soon. Natural gas producers might be an excellent short in the stock market.