Natural Gas Weekly Price Forecast – natural gas finds three dollars too much
Natural gas markets fell rather hard during the week, reaching towards the $2.90 level, an area that has been supportive more than once. I think if we can break down below the 50 moving average on the weekly chart which is offering dynamic support currently, the market will then unwind to the $2.60 level again longer term. There are several areas underneath that could cause problems, especially near the $2.80 level. I think that even if we do rally from here and break above the top of the candle for the week, the market should then find more than enough resistance at the $3.10 level. I think that we are just simply overstretched at this point, and the longer-term oversupply of natural gas continues to be a major issue.
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At this point, I’d be a seller of exhaustive candles or break down below the candle stick for the week. I think that longer-term traders should keep an eye on this area just above, because it certainly attract a lot of attention from natural gas suppliers, not just speculators as that’s an area where they begin to make money again. However, when you look at the weekly chart it’s hard not to notice that we have had several green candles in a row, so even though this candlestick is negative looking, we are still looking at a lot of buying pressure below. It’s going to be choppy, but I think overall market participants are looking at the longer-term picture at these higher levels.