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

Natural gas markets have been trying to break above the $3.00 level for the last several weeks, and during the Friday session this past week, we did do just that. By doing so, it opens the door to the $3.10 level above, which is an area that should continue to offer significant resistance. It would be a simple reclamation of the overall consolidation that we have been in for some time, and I think at the $3.10 level we should see plenty of selling pressure. At the first signs of exhaustion candle, I would be more than willing to short this market. However, if we manage to break above the $3.10 level, then we could go much higher, perhaps reaching towards the $3.40 level.

Warmer temperatures in the United States should drive up demand for energy, and of course we have a strong labor market in America which suggests that there should be even more demand going forward. However, at the end of the day, the one thing that you can count on is that there is an oversupply of natural gas longer-term, so I do think that the sellers come back eventually. The question now is whether it will be near the $3.10 level, or perhaps even the $3.40 level? In the meantime, it looks as if the buyers are going to continue to push.

NATGAS Video 18.06.18