Natural Gas Weekly Price Forecast ::
Natural gas markets fell during the week, breaking the bottom of a shooting star from a couple of weeks ago, and of course the previous week that had a neutral candle. At this point, we are reentering the previous consolidation area.
Natural gas markets have broken below the $3.20 level on the weekly chart, which was the top of the previous consolidation area. The fact that we have fallen below here, I think that if we break down below the lows of the week that just close, we could continue to go further. One of the biggest concerns that a lot of traders will face is summed up in two words: “El Niño.” This is a weather phenomenon that can make for mild winters in the United States, which of course has a massive influence on the demand of natural gas.
The natural gas markets continue to go back and forth overall, and this recent pop above the resistance line could end up being a false breakout. There is a serious danger of this happening. However, if we get a daily close above $3.22 level, then I think the market reaches towards the $3.40 level after that. Overall though, low the $3.15 level, I think we will continue to see a bearish pressure down to the three dollars handle. Below there, the market could go down to the $2.80 level after that. At this point, I believe that breaking above the $3.40 level is very unlikely, but if it did happen that would obviously be an extraordinarily bullish sign. At this point, it looks as if natural gas market is trying to reenter the normalcy of the consolidation that spent in effect for ages now.
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