Natural Gas Weekly Price Forecast – natural gas markets get pummeled during the week

Natural gas markets broke down significantly during the week, slicing through the $2.80 level. We broke the back of a hammer from the previous week, which of course is a very negative sign. When I look at this chart, it’s very easy to see that there is a lot of interest in natural gas down near the $2.70 level, but there’s also a lot of resistance near the $3.00 level. The market continues to go back and forth over the longer-term, and I think that has not changed. At this point, I anticipate that we will make a run towards the $2.70 level where buyers will step back in. By using a longer-term range bound system, you’ve been able to profit from this market quite nicely over the last year or so.

I don’t see anything different in the overall fundamentals for natural gas, especially considering that there is a massive oversupply of the commodity. Quite frankly, it’s so abundant in the United States that quite a bit of natural gas is simply burned off by petroleum drillers. We have that much of a commodity, it has a hard time holding gains. If we were to break down below the $2.70 level, then I think we would go testing the $2.60 level, but that doesn’t seem very likely to happen. I think at this point we continue to stay in this nice range. You may drill down to the daily or even the hourly charts to get your signal, but the big picture looks pretty clear.

NATGAS Video 10.09.18