Weekly Natural Gas Price Forecast – Natural Gas Markets Give Up Early Gains

During the week, natural gas markets attempted to rally, but ended up producing a gigantic, inverted hammer at the bottom of a massive move preceding it.

The natural gas markets attempted a rally for the week and were ultimately positive, but they surrendered the majority of their gains to demonstrate reluctance. If we break below the $5.40 mark, we will almost probably drop below the $5.00 level, a region that I believe will garner much interest. Then, anything below that threshold significantly expands options.

At that time, I believe the price of natural gas would plummet to the 200-Week Moving Average (MA) or possibly much lower. In this case, natural gas would likely seek a floor near $3.50, a region that has proved significant on multiple occasions. Alternatively, if the price were to break over the 50-Week EMA, we may make a genuine push to reach $7.00. It is possible, but I wouldn’t hold my breath. You should keep this possibility in mind.

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It will likely be easier to trade this market using a shorter-term chart, as the weekly chart has formed a gigantic “M” pattern, which signals that natural gas will be given away for free. I don’t believe that is the objective, but every time we rally, you must view it through the lens of a potential selling opportunity.

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