Natural Gas Weekly Price Forecast – Natural Gas Markets Somehow Look Even WorseNatural gas markets were a bit choppy during the week, but as you can see, we have formed a candlestick that looks a lot like an inverted hammer. The next question is will we break the bottom or the top of this candle?
Natural gas markets initially tried to rally during the week but then sold off rather drastically. By the time we got to the end of the week though, we had not only broken below the $1.60 level but have turned around to reach towards that level again as resistance. Ultimately, the market looks absolutely horrible, so at this point I have absolutely no reason to think that the market is going to turn around and start buying. Even if we break above the top of the inverted hammer, it’s likely that the market could drift a bit higher but at this point I think there is a “hard ceiling” near the $2.00 level. If we were to break above there, that could change a lot of things but right now I just don’t see the catalyst for that happening beyond bankruptcies in the United States when it comes to natural gas.
NATGAS Video 06.04.20
At this point, I believe that the $1.50 level should be massive in its implications, so if we break down below there, we will probably see some type of massive flush lower. This candlestick does suggest quite a bit of volatility, so I think it’s still difficult to trade this market from a longer-term standpoint and to the downside. At this point, waiting for a simple bounce to start shorting might be the best way to trade, just as I would suggest on the daily charts as well, as the market is decidedly bearish, and you should not fight this type of trend been.
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