Natural Gas Weekly Price Forecast – Natural Gas Markets Show Signs of Resistance

Natural gas markets have initially tried to rally a bit during the week but ran into a lot of resistance at the $2.00 level. Ultimately, the market rolling over the way it has to form a bit of a shooting star suggests that there are plenty of sellers out there. However, if we were to break above the top of the shooting star, then it’s likely that the $2.10 level above would also cause issues and most certainly the $2.20 level will. Keep in mind that the natural gas markets have been in a downtrend for some time and although we are at an extremely low level, the reality is that the market has no reason to rally for a significant amount of time.

NATGAS Video 24.02.20

Eventually, the slew of bankruptcies that will be coming in the United States for the natural gas industry will eventually lift price, but we are quite a way from there so keep in mind it may take some time for that to happen. I do believe that happens given enough time but it’s going to take quite a bit of effort and litigation to make that happen. I believe that rallies will be sold into time and time again, at least until we see some type of complete collapse of the industry. To the downside, I believe that the $1.60 level will be extraordinarily difficult to break down through, as it has been very supportive in the past. Ultimately, I believe that the market will try to reach that level sometime this year, and then start rallying based upon the bloodbath that I expect to see in the industry.