Natural Gas Weekly Price Forecast – Natural gas markets stall

Natural gas markets initially tried to rally during the week but turned around of form a bit of the shooting star as we have run into exhaustion. This is a surprise, considering that the market is so heavily oversupplied. After the recent selloff, one could suggest that perhaps is bounce has been a bit of a short covering rally, but either way it is a small rally and a large move to the downside.

NATGAS Video 11.03.19

This doesn’t Messerli mean that I want to try to sell this market and hang on for ages, but I do recognize when we are starting to show signs of exhaustion in a downtrend that it’s prudent to start selling. I think that we are going to reach towards the $2.60 level underneath, possibly even the $2.50 level. It’s there that I think there will be a lot of buyers waiting, and therefore I think the downside is somewhat limited. As far as the upside is concerned, it’s not until we break above $3.50 that I can take it seriously. There’s so much noise between here and there that I feel it’s only a matter of time before the sellers take over again.

Beyond that, we are in the wrong time of the year to expect higher natural gas pricing, as the United States will start to warm up soon. Beyond that, there are worries about global growth, which of course can put a bit of a drag on demand for energy.

Please let us know what you think in the comments below