Natural Gas Weekly Price Forecast – Natural Gas Markets Struggle at Round Figure

Natural gas markets have shown a proclivity to try and break the two dollars level again but failed during the week. It should be noted that I am looking at the July contract now as we have rolled over. That being said, this is a market that faces a lot of headwinds due to the fact that the supply is so overdone. However, we are going to see some bankruptcies in the United States that could help things. The weekly candlestick is forming a bit of a shooting star and does suggest that perhaps we could go a bit lower. That being said, the 50 week EMA is above at the $2.14 level, so it makes quite a bit of sense that we could see that offer selling pressure as well.

NATGAS Video 25.05.20

If we break down below the bottom of the weekly candlestick, I will anticipate a move to the bottom of the previous weekly candlestick. Below there, then the market opens up for a move to the $1.50 level. That of course is the “bottom” of the market, and I do not think we would go much further than that. If we can turn around a break above the 50 week EMA however, that would be very bullish sign and perhaps open up the possibility of a move towards the $2.50 level above. This market continues to be slanted to the downside but we are at extraordinarily low levels in general so that should be kept in mind.

This article was originally posted on FX Empire

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