Natural Gas Weekly Price Forecast – natural gas markets rally towards resistance during the week

Natural gas markets exploded to the upside during the week, reaching towards the vital $3.00 level. This is an area that has offered plenty of resistance in the past, so it’s likely that we could see some selling pressure again. · FX Empire

Christopher Lewis

Updated Fri, Sep 21, 2018, 11:19 PM

Natural gas markets have exploded to the upside with a very long green candle. We broke above the shooting star from the previous week, showing signs of very bullish pressure, and it is of course the colder time of year where we could see a break out, but last year we didn’t see that. It’ll be interesting to see what happens next, but I think the “redline” is somewhere near the $3.10 level. If we break above there, then the market will be free to go much higher, but that would obviously be driven by whether more than anything else. Pay attention to the weather forecast for the northeastern part of the United States, as it will drive a lot of the demand going forward.

As we are starting to see the markets focus on the winter months, there is going to be a natural proclivity to go long natural gas, but demand will fluctuate wildly. It’s interesting that the last inventory number was a little more bearish than anticipated, so it’s possible that the markets will turn right back around. However, I’m not willing to play against this candlestick, unless of course we were to focus on shorter-term charts. It’s difficult for a longer-term trader to get involved in this market, but if you focus on the daily chart, you should see plenty of opportunities between the two well defined boundaries. Again though, if we break above the $3.10 level, we could go much higher, perhaps as high as the $3.40 level.