Natural Gas Weekly Price Forecast – Natural gas markets have another lackluster week

Natural gas markets initially tried to rally during the week but gave back quite a bit of the gains to form a bit of a shooting star. That of course is negative but the problem we have is that we are at such extreme lows right now, that the selling of this market is going to be difficult, at least for the longer-term trader. Quite frankly, a longer-term trader is probably looking for a buying opportunity as we are at extreme lows, but there’s simply no reason to do that based upon the charts at this point.

NATGAS Video 06.05.19

If we break down below the previous week’s candle, we could go down to the $2.25 level. However, you are probably going to need to do that based upon daily charts or perhaps even shorter-term charts. If we do break above the top of the weekly candle stick, then we could go to the $2.70 level, an area that had seen a lot of selling previously. Quite frankly, we probably don’t have much in the way of a buying opportunity until late this year. If that’s going to be the case then longer-term traders will need to see a green candle or two on the weekly chart to start shorting again. Longer-term traders are probably sitting on their hands currently as although there is a low inventory, we are in the height of drilling season and should see inventory build quite nicely.

Please let us know what you think in the comments below