Natural gas markets went back and forth during the course of the week, hovering around the $3.00 level. At this juncture, I think it’s likely that we could continue to go higher and fill the gap above that I have been paying attention to for a couple of weeks. That gap does need to get filled eventually, and when it does I suspect that sellers will return. I would be more than willing to short this market somewhere near the $3.30 level on signs of exhaustion, but quite frankly I probably wouldn’t wait for a weekly candle stick to confirm this.
NATGAS Video 14.01.19
The alternate scenario is that we break down below the hammer from the previous candle stick, which would be an extraordinarily bearish sign and probably send this market down to the $2.75 level, maybe even the $2.50 level. That being said, I suspect that a bounce to the previous mentioned $3.30 level is more likely than not and seems to be technical mandate from what I see.
I expect that natural gas markets have probably one more punch higher due to the time of year but given enough time I think that we start to focus on the fact that natural gas supply can almost never wipe out demand because of the vast oversupply of natural gas in the United States and Canada alone. Beyond that, if the global economic picture does start to slow down even further, that will drive down demand also.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Crude Oil Weekly Price Forecast – crude oil markets break out during the week
- AUD/USD Weekly Price Forecast – Australian dollar rallies
- GBP/JPY Weekly Price Forecast – British pound continues to languish against yen
- Silver Weekly Price Forecast – Silver markets pause
- Silver Price Forecast – Silver markets rally but fail later on Friday
- EUR/USD Weekly Price Forecast – Euro breaks the 1.15 handle