Natural Gas Weekly Price Forecast – Natural gas markets test major trendline

Natural gas markets rallied a bit during the trading sessions that made up the week, testing the bottom of the downtrend line. At this point, the market looks very likely to find signs of exhaustion on short-term charts but the question now will remain: “are we seeing the beginning of the Winter bounce?” I don’t think that’s quite the case yet, so I believe that we will pull back a bit from here. To the upside, we could reach towards the $2.50 level and still not have completely broken out. That being said, it looks very much like a bottoming pattern to me.

NATGAS Video 02.09.19

We are trading the October contract and that of course is going to continue to be forefront on most traders mines, as although October is a little bit older than many of the other months that we trade, the reality is it isn’t quite winter yet. To the downside, I believe that the $2.00 level has now signified that it is the “floor” of the overall marketplace. With that, I believe that there should be nice buying opportunities down at that level but I think short-term traders will continue to press the issue as there should be plenty of stop loss is down there that people are trying to take out. Once they do, it could cause a bit of a flush but right now it looks to me like we simply can’t do it. With that, I believe short-term sellers rule the day, but longer-term buyers are starting to come back into this market.

Please let us know what you think in the comments below