Natural Gas Weekly Price Forecast – natural gas markets give up gains again this week

Natural gas markets initially gapped lower to kick off the week, turned around to reach towards the $3.35 level, and then rolled over to form a massive shooting star. That in and of itself is a negative sign, but the fact that we are closing below the $3.25 level is also rather negative. With that in mind, if we break down below the bottom of the candle stick for the week, I think that opens the floodgates to lower pricing, perhaps reaching down to the $3.10 level initially, followed by the $3 level. That of course would be a significantly bearish move, especially considering that we are trading winter contracts, and if we can keep gains here, when can we?

NATGAS Video 05.11.18

Rallies at this point in time should be selling opportunities, especially closer to the $3.35 level. Longer-term, I believe that this market will continue to fall based upon the potential warmer winter that the Americans may be seeing. Beyond that, inventory isn’t being drawn down at the rate that a lot of traders like to see and the seasonality of bullish pressure may be coming to an end rather abruptly. Will have to wait and see but at this point I think the market is most comfortable falling and therefore you should not fight that type of move. Revisiting this at the close of next week’s candle is probably the best way to go if you are looking for a buying opportunity but we would need to see either a very strong green candle or some type of hammer.