Natural Gas Weekly Price Forecast – Natural Gas Pressuring Resistance

Natural gas markets have initially pulled back just a bit during the course of the trading week but turned around to show signs of strength. With that being the case, the market is likely to continue to see a lot of pressure to the upside. However, it is not until we break out above the $3.40 level that the breakout is actually complete, and that could open up a possible move of $1.00 higher based upon the “measured move.”

NATGAS Video 14.06.21

When you look at the overall consolidation area though, if we were to take out the $3.00 level underneath, that would be a very negative turn of events. While I do not necessarily think that the market is likely to see a major meltdown, I think that the natural gas markets will probably be the first markets to roll over when it comes time for the commodity boom to falter. It is because of this that we need to be very cautious and recognize that if we are going to play the commodity trade, although natural gas could work it is probably the last one you should be taking advantage of.

I keep an eye on this chart, because it could give you a bit of a “heads up” as to when the other ones may falter. I think at this point, if the market was to break down, then it could be the first sign of trouble. Nonetheless, it certainly looks very bullish as we close out the week so it will be interesting to see if we can make this move to the upside and reach for another full dollar higher.

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