Natural Gas Weekly Price Forecast – Natural gas markets gain again this weekNatural gas markets rallied a bit during the week, showing signs of life again, but quite frankly we are a long way away from forming some type of bull market. This is a market that continues to be negative longer term, and even with this slight rally I’m still not impressed.
Natural gas markets rallied a bit during the trading week, reaching towards the $2.70 level, an area that features the 50 day EMA. Because of this, it’s not a huge surprise to think that perhaps we could pull back a bit from here, but longer-term traders are going to struggle to trade this market as we are so low at the moment and sitting relatively close to major support in the form of $2.50. With that in mind, you are probably going to be forced to the short-term charts, because quite frankly buying natural gas down at these lower levels is very reckless. While we could see a bounce in a longer-term move, the reality is that is more likely to happen later in the year.
NATGAS Video 20.05.19
For the longer-term trader, it’s probably better to wait for this market to bounce and give you an opportunity to short natural gas at a much higher level. Ideally we could go to the $2.90 level, but I think we probably won’t see that anytime soon. Natural gas is decidedly weak and with good reason, as we are so oversupplied. Somewhere around November though, things change and you’ll start to see buyers jump in to take advantage of the seasonality of natural gas. Until then, rallies are to be faded, and unfortunately probably on shorter-term charts than a longer-term trader would be used to.
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