Natural Gas Weekly Price Forecast – Natural gas rallies for the week

Natural gas markets initially pulled back during the week but have shown signs of life as we turned around to reach towards the top of the shooting star from the previous week. Quite frankly, I would not be surprised at all to see this market show signs of exhaustion above. Those signs of exhaustion would be a selling opportunity, as we are most certainly in a downtrend. We could rally quite significantly from here quite frankly, but I think it’s only going to be a selling opportunity as this is a market that is in a very cyclically negative time of year.

NATGAS Video 13.05.19

If we do break down below the $2.50 level, we could go down to the $2.25 level. That level is supportive as well based upon longer-term charts, but quite frankly we haven’t been there for some time so that move would be rather quick and quite brutal. Simply fading exhaustive candles on the daily chart will probably help longer-term traders. I have no interest in buying natural gas, because there is so much in the way of oversupply when it comes to this marketplace and of course there will be a lack of demand this time a year as how Americans and Europeans won’t be using as much due to heating demands.

That being said, the candle stick is a rather positive looking so I think we have a little while to go before we see the exhaustion necessary to continue the longer-term downtrend. All things being equal, we remain very negative.

Please let us know what you think in the comments below