Natural Gas Weekly Price Forecast – natural gas markets rally for the week

The natural gas markets have initially pulled back during the week but found enough buyers below to turn things around and exploded to the upside, especially on Friday. Because of this, I think we continue the overall consolidation that we have been in for some time. The $3.00 level above shows resistance that extends to the $3.10 level after that. Because of this, I think that the market will have a couple of weeks of buying pressure, only to turn right back around and stay within the range. This market continues to be very volatile, and I don’t think much as changed even though this candle is somewhat impressive.

Natural gas market participants continue to deal with an oversupply in the market longer-term, and I think that unless something changes longer-term, I think that we are going to continue to see a lot of back-and-forth. If we were to break above the $3.10 level, then we could go as high as $3.40 at that point, but I don’t anticipate that happening. If we break down below the $2.60 level, that would be catastrophic for this market and we would probably get down to the $2.40 level, perhaps even lower than that. However though, I believe it is “steady as she goes” going back and forth in the range that I have marked on the chart. This has been very reliable for some time.

NATGAS Video 06.08.18