Natural Gas Weekly Price Forecast – Natural Gas Markets Show Signs of Weakness Yet AgainThe natural gas markets rallied a bit during the week, reaching above the $1.80 level before failing again. The inverted hammer for the weekly candlestick of course shows a lot of weakness.
Natural gas markets have broken above the $1.80 level but broke right back down during the week to form an inverted hammer. This normally means that there is going to be a bit of continuation to the downside, perhaps reaching towards the $1.60 level. At this point, the market is in a huge downtrend and it makes quite a bit of sense that the sellers will come into punish the natural gas markets anytime they rally. Quite frankly, it’s not until we get a weekly candlestick above the $2.20 level that I would trust anything to the upside it seems.
NATGAS Video 09.03.20
The natural gas markets need to see a lot of bankruptcies in the United States in order to see natural gas markets shoot to the upside. If we do get bankruptcies, it’s very likely that the market will reach much higher and spike. That being said though, if that is to happen, it will be a longer-term process, so quite frankly I don’t think it’s likely to help the market anytime soon. At this point, we are getting ready to see even lower prices, but it is probably best to trade this market off of shorter time frames such as the daily or even hourly chart as we are so overextended it’s difficult to make the risk/reward situation for a weekly candlestick trade. Eventually, we will get those bankruptcies and then we can start to talk about longer-term movement. Until then, it’s short-term negativity that you should be focusing on more than anything else. We have been in a downtrend for some time, and it makes sense that it continues.