Natural Gas Weekly Price Forecast – Natural Gas Markets Have 2nd Week in a Row of Bullish Pressure

Natural Gas Weekly Technical Analysis

Natural gas markets gapped higher to kick off the week, showing signs of life again. Ultimately, the $3.00 level above is significant resistance, at least from a psychological standpoint. Furthermore, there is a lot of noise near the $3.30 level, where the 50-Day EMA sits there on the daily chart. If we can break above there, it’s likely that we will see more resistance above. This is especially true near the $4.00 level, because it is a large, round, psychologically important number, but we also have a bounce due to more than anything else, simple short covering as sellers have been taken advantage of this move.

Underneath, we have the $2.00 level, which should offer quite a bit of support. If we were to break down below there, then it’s likely that we could go much lower. That being said, this is a market that has been overdone to the downside, so look at this through the prism of a relief rally, but I don’t necessarily think that it’s going to be anything different. After all, we have the warmer temperatures coming over the next few weeks in the northern hemisphere, and that will work of course against the value of natural gas and could bring demand down.

Furthermore, we have central banks around the world doing everything they can to slow down the economy, which also will drive down quite a bit of demand for natural gas from an industrial standpoint. We are oversold, and we should bounce. However, I don’t look for any rally to take hold for a longer amount of time.

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