Natural Gas Weekly Price Forecast – Natural Gas Markets Stabilize

Natural gas markets have gone back and forth during the course of the week, showing signs of support at the 200 week EMA. The neutral candlestick of course suggests that we do not have any clear directionality in the short term, but longer-term we obviously have to pay attention to the fact that we are going to be getting warmer temperatures in the northern hemisphere, which kills demand for natural gas. That being said, the cyclical trade will typically send this market towards the bottom of the overall range. If we break down below the $2.25 level, then it would be a confirmed “double top.” At that point, I anticipate that the market could go all the way back down to the bottom at the $1.50 level.

NATGAS Video 15.03.21

On a rally, I look for an opportunity to short this market at the first signs of trouble. Quite frankly, I have no interest in buying this market anytime soon, because the oversupply issues will start to come back to the forefront now that the freeze is over. The recent shot higher has been due to frozen supply in central part of the United States, which of course has abated. Now that the market is starting to see more supply, we can start to focus on shorting yet again.

That being said, we have had four red candlesticks in a row, so I think that it is only a matter of time before we get some type of reach race. That is fine, and willing to take advantage of another selling opportunity, perhaps based on a shorter time frame charts for a better entry.

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