Natural Gas Weekly Price Forecast – natural gas markets formed a massive shooting starThe natural gas markets have been on fire as of late, but the weekly candle stick looks horrible. It’s a shooting star at major resistance in the form of the $3.35 level, which was previous support in the past.
Natural gas markets tried to rally during the week, but you can see we gave up quite a bit of gains. Beyond that, we had formed a couple of shooting stars on the daily chart, so it’s very obvious that the market is way over bought, and I think it’s only a matter of time before we start to see this market pull back. I suspect that longer-term traders have gotten a bit frustrated with this market, because it had been so massively consolidated. However, I think that we may have just hit the high in the short term, and I think that we may get a couple of negative candle sticks on the weekly chart from here. I would probably use the daily charts though, because quite frankly we have such a huge candle stick that had formed for the weekly chart.
I think at this point, the market probably will try to find support at $3.10, and then possibly the $3.00 level. That has been an explosive move, and it would make sense that we would need to retrace this type of explosion. At this point, I think that the market will continue to see certain amount of underlying demand, but I think part of this may have been due to fears about what damage hurricane conditions in the Gulf of Mexico may have done. Ultimately, we have colder temperatures coming as well so that might have been a bit of front running. We have gotten way ahead of ourselves though, so a pullback makes complete sense.