Natural Gas Weekly Price Forecast – natural gas markets show support

Natural gas markets fell during most of the week but turned around at the first sign of support as we had reached very low levels. We are starting to see cold temperatures in the northeastern part of the United States, so a short-term bounce may be coming.
Christopher Lewis
Natural gas weekly chart, January 28, 2019

Natural gas markets spent most of the week falling, but towards the end of it, we did start to see buyers come in based upon the gap and the cold snap that we are seeing in the northeastern part of the United States, one of the biggest consumers of natural gas in the world. That being the case, I think that we could get a short-term pop but there is most certainly a lot of resistance above that will continue to come into play, especially near the $3.25 level, and most certainly at the $3.50 level.

NATGAS Video 28.01.19

Underneath, I think there is a massive amount of support at the $2.75 level, an area that has been supported and tested several different times. If we break down below the $2.75 level, then the market will unwind rather drastically. I think based upon the candlestick patterns though, we are more than likely to see a bit of a bounce to turn around and start falling again, as these whether patterns are short-term catalyst. I do believe that we will get a selling opportunity above, so I’m more than willing to take advantage of it when it shows up. The $3.50 level above is a particularly interesting area, but quite frankly I’d be surprised if we even got up to that area. For what it’s worth, it is roughly the 50% Fibonacci retracement level from the fall as well, which of course will attract a lot of attention.

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