Natural Gas Weekly Price Forecast – Natural gas struggles again

Natural gas markets initially shot higher during the week but as you can see we ended up forming a bit of a shooting star by the time it was also done. That’s obviously a very negative sign, but keep in mind that we are most certainly stuck in a range.
Christopher Lewis
Natural gas weekly chart, March 25, 2019

Natural gas markets initially rallied during the week but turned around to show signs of exhaustion as we formed a shooting star. At this point, we are still very much in a trading range, so I’m not overly concerned about the market collapsing, as I believe the $2.50 level underneath will continue to be very supportive as it has in the past. Quite frankly, longer-term traders probably don’t have that much to do in this market, but simply sit on the sidelines and perhaps even bring down to titer charts such as the daily or lower.

NATGAS Video 25.03.19

That being said, we are in a clear $0.50 range, so it’s difficult to imagine a scenario where we go any further than that. That being the case, it’s very likely that we will continue to sell near the $2.90 level, while we are more than likely to find buying opportunities near the $2.60 level. Expect choppy and erratic behavior, but at the end of the day these areas continue to be important and continue to contain the market overall. If we did break out of this range, then we would have to reassess the entire situation.

The one thing that the candle stick for the week does is tells us that there is still a very negative bias in general, so short-term selling continues to be the way forward from what I see. I have no interest in buying natural gas for any length of time.

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