Natural Gas Weekly Price Forecast – Natural Gas Markets Break Below $2.50
Natural Gas Price Forecast Video for 06.02.23
Natural Gas Weekly Technical Analysis
Natural gas markets have fallen again during the trading week, breaking down below the $2.50 level. At this point, the market is likely to continue to see a lot of negativity, but sooner or later one would have to think that we will get a bear market rally. Bear market rally at this point would more likely than not be vicious, and therefore it’s likely that we could see an opportunity to short this market from higher levels. At this point, I just don’t have any interest in chasing this trade. Sure, short-term traders are probably continuing to sell every short-term rally, but on the weekly chart you have nowhere near enough room to move.
We need to see a couple of good green candles and a long way to the upside to start feeding a rally. We are already trading the March contract, which of course will have the specter of the warmer temperatures coming to the northern hemisphere, so that will only add more selling pressure. Quite frankly, this is a market that could offer a career making trade, but we just don’t have it right now.
Sooner or later, the natural gas markets will have to turn things around, but right now I think we’ve got a situation where there’s just not enough demand and of course there’s a huge concern about global growth, and therefore the fact that the natural gas being in abundance will only weigh upon the idea of pricing power. The size of the candlestick is very similar to the last several, so it looks like the selling pressure is not slowing down at this point.
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This article was originally posted on FX Empire
