Natural Gas Weekly Price Forecast – Natural Gas Markets Show Signs Of SupportNatural gas markets have initially pulled back during the week, breaking below the $1.80 level but then turned around to rally a bit. At this point, the market looks as if it is trying to stabilize a bit.
Natural gas markets initially fell a bit during the week, breaking down below the $1.80 level before turning around and rallying to show signs of life again. The $1.80 level is an area that has been supportive in the past, but we also have broken down to the $1.60 level previously, so I don’t think this is the be-all and end-all of support. If the market was to rally a bit from here, I would anticipate some type of exhaustion coming into play near the $2.00 level, and therefore it’s likely that rallies will give you an opportunity to start selling again.
NATGAS Video 17.02.20
Remember, the oversupply of natural gas will continue to be a major issue and the market is most certainly been in a downtrend. Furthermore, even if we did break above the $2.00 level the market will more than likely find a ton of resistance at the $2.20 level. Exhaustion is probably the best way to describe the trade you are looking for, as the markets will continue to deal with a lack of demand as temperatures are warmer than anticipated in the northeastern part of the United States right along with a slew of fracking. The market is likely to see a rush of bankruptcies because of the low pricing of commodities. Ultimately, this is a market that should continue to drift a bit lower after rallies, but we are still overstretched at this point I think that you are probably best to simply wait for an opportunity to sell from higher levels instead of trying to break it down here.
Please let us know what you think in the comments below