Natural Gas Weekly Price Forecast – Natural Gas Markets Testing Major Support LevelNatural gas markets broke down pretty significantly during the week as we continue to see a lot of oversupply. We are testing a major support level.
Natural gas markets have broken down significantly during the week, reaching down to the $1.50 level. At this point in time, the market is likely to see a lot of support in that area, as it has been incredibly supportive several times over the last several years. Having said that, we have closed towards the bottom of the candlestick, so this is a bit concerning if you are trying to pick the bottom here.
I am not a big fan of trying to pick the bottom, but this is an area that is so important on longer-term charts, and therefore I am looking for some type of bounce. If we get that bounce, then I think we could go to the $1.80 level which is the top of the weekly candlestick. If we break above there, then the market is likely to go looking towards the two point to zero dollars level.
NATGAS Video 29.06.20
If we were to break down below the $1.50 level on a weekly candlestick or even just a daily candlestick, the market could unwind down to the $1.25 level underneath. That being the case, I we have a lot of decisions to make rather soon, and this market could be one that rather interesting to play. There are plenty of bankruptcies coming in the United States and that will drive down the supply eventually, but the inventory numbers for the week were horrible and therefore extraordinarily bearish. If that is going to continue to be the case, then I like the idea of looking for some type of turnaround.
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