Natural Gas Weekly Price Forecast – Natural Gas Markets Have Rough Week AgainNatural gas markets broke down significantly during the week, reaching down towards the $1.60 level. Natural gas continues to suffer at the hands of an oversupply issue, at this should continue to be the case.
Natural gas markets broke down during the week, reaching towards the $1.60 level. That being said, you should notice that the top of the candlestick is flat, meaning that we never really had any strength during the week. I think that the natural gas downtrend should continue, and at this point it’s very likely that the market will continue to find plenty of sellers above as warmer temperatures come to the United States, and of course the entirety of the world economy slowing down and driving down demand even further.
NATGAS Video 23.03.20
The $1.50 level underneath could be a target, but quite frankly I think it’s very difficult to trade this market from a longer-term perspective because the risk to reward ratio just isn’t there anymore. That being said, if the market does wipe out the two dollars level to the upside, it’s likely that we could go towards the $2.20 level, perhaps even the $2.50 level. Natural gas continues to be very bearish and simply has no reason to rally for a significant amount of time. The $1.50 level will be tough to crack though, so you are probably going to be better off simply looking at the daily candlesticks or even for our candlesticks and selling every time this market rallies. The overall trend is so obviously negative that it’s going to take something rather drastic to change things.
About the only thing that is going to turn this market around for a longer-term move is bankruptcies coming out the United States fracking companies, which certainly seems to be in the cards but right now we aren’t there quite yet.