Natural Gas Weekly Price Forecast – Natural Gas Markets Formed a Shooting Star
Natural gas markets rallied significantly during the week, reaching as high as the $2.17 level before pulling back again. Ultimately, we ended up forming a shooting star which of course is an extremely negative candlestick, and I think at this point what it suggests is that the market is not quite ready to break out from a longer-term standpoint. There is still a gap on the daily chart that has yet to be filled underneath, so it would make sense that we could see a bit of a pullback anyway. If that is going to be the case, I suspect that longer-term traders are trying to make an argument for a move to the upside based upon the idea of drillers going out of business. After all, there has been a massive oversupply of natural gas for some time, so it will be interesting to see whether or not we can bounce.
NATGAS Video 11.05.20
On the other hand, if we were to break above the top of the shooting star, then it could open up the move to the 200 week EMA which is closer to the $2.70 level. That would take quite a bit of time and a significant turnaround in sentiment, but I do believe that the energy market itself is going to be changing drastically in the United States as several of the natural gas drillers are also involved in crude oil production, which of course has been shutting down quite rapidly as well. In the short term, I think we get a pullback, but I do think that a bounce is due somewhere around the $1.60 level.