Natural Gas Weekly Price Forecast – Natural gas markets recover for the week

Natural gas markets rally during the week, breaking above the $2.30 level during the day on Friday. At this point, the market has formed a nice turnaround but on shorter-term charts, you can see that there is a significant amount of resistance. Ultimately, this is a market that is in a bear market for a reason. There is far too much natural gas out there to keep the market afloat. Supply far exceeds demand and that will be the case for several months at the very least. However, longer-term traders know that once the fall contracts come back into play, quite frankly you will see a lot of buying pressure.

NATGAS Video 01.07.19

In the meantime, you are better off looking at the short-term charts for signs of exhaustion to take advantage of. However, if we get some type of exhaustive candle on the weekly chart that shouldn’t be ignored either. I believe that the market is going to go looking towards the $2.00 level sometime during the summer, but we may have a little bit of a bounce between now and then.

If we were to break down below the $2.00 level, that would be an extraordinarily negative turn of events. That being said, looking for higher levels to sell from is probably the only real trade that’s available here. If you are short-term trader, you would be doing the same thing, just simply with shorter time frames such as the daily or hourly chart. I have no interest in buying natural gas this time a year.

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