Natural Gas Weekly Price Forecast – Natural gas markets run into exhaustionNatural gas markets rallied again during the week but managed to find resistance at the 50 week EMA to turn around and form a shooting star. The shooting star of course is a very negative sign, but I think at this point it’s obvious that we have started to put in a bottoming pattern.
Natural gas markets have rallied during the week again but gave back about half of the gains to form a bit of a shooting star. The shooting star sits on top of the $2.50 level, and at this point a short-term pullback makes quite a bit of sense as we may have gotten a bit parabolic. All things being equal, if we pull back from here it’s likely that we will find buyers underneath and looking for some type of supportive candle stick in order to start buying again. Ultimately though, we could break above the top of the shooting star and therefore show an impulsive momentum. Either way, it looks as if we are starting to get close to the “Winter pop” that we get every year.
NATGAS Video 16.09.19
Ultimately, the market will rally given enough time, and we have broken above a trend line. With that, I think we are getting very close and I do believe that most of the summer was building the base for the move higher. You can see that in late 2018 we had a massive move towards the $5.00 level, before we broke down again. We aren’t quite there yet, but we are getting closer to some type of move like that. Will it be all the way to $5.00? I doubt it. However, there is a significant amount of momentum just waiting to be released in this marketplace, especially if the winter ends up being relatively cold.
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