Natural Gas Weekly Price Forecast – Natural Gas Markets Rally Towards Big FigureNatural gas markets initially dipped to kick off the week but then rally towards the $2.00 level before giving back those gains. This is a very bullish looking candlestick except that the $2.00 level offered so much in the way of resistance.
Natural gas markets initially fell a bit during the week, but then shot straight up in the air as the “buy oil sell natural gas” trade is done. The crude oil market volatility has transferred over here as well, so it makes quite a bit of sense that natural gas may benefit from that situation. Having said that, the market is very likely to still suffer from the lack of demand out there as whether will warm up. Furthermore, we are going to see large parts of the US economy shut down due to the coronavirus, thereby driving down demand even further.
NATGAS Video 16.03.20
That being said, there are going to be bankruptcies when it comes to the natural gas market companies, as shale producers had driven down the price so drastically. The oversupply of natural gas will continue to be a major problem in this market, but as soon as we get there is bankruptcies, the market may be able to rally for a longer-term move. If we can break above the $2.00 level, then I anticipate that the next target will be the $2.20 level. However, it’s very likely that the $2.00 level will continue to be a bit of a “ceiling” in the market in the intermediate term. If we can break down below the lows of the candlestick for the weekly candle, then we probably go looking towards the $1.50 level. Natural gas still is easier to trade from shorter time frame though, and it does tend to be a day traders type of vehicle.