Natural Gas Weekly Price Forecast – Natural Gas Pulled Back Again

Natural gas markets have fallen during the course of the week after initially trying to break above the $3.00 level. However, what you do not see on the weekly chart is the fact that we ended up forming a bit of a hammer on Friday right at the 200 day EMA. Ultimately, Goldman Sachs just suggested a target of $3.25, so I think that some traders are looking to get involved. Furthermore, the temperatures in the United States will continue to point so it is only a matter of time before people jump in and try to take advantage of “cheap gas.”

NATGAS Video 07.12.20

The 50 week EMA underneath has offered support, so I think ultimately it is only a matter of time before we bounced again. I do not think that it is a longer-term rally, one that probably only has a life of about six weeks or so. Ultimately, I think what we are seeing here is a bounce ready to happen and then once we start trading the spring contracts, we will probably start selling off again. I do not know if we can take off above the most recent high, but it would not surprise me at all to see the market try to get back towards the highs.

Having said all of that, if we were to break down below the 50 week EMA, then we could go down to the $2.00 level. I do not think that happens, but if it does that would be a very negative sign for this market. What makes it even more devastating is the fact that it happens in the dead of winter.

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