Natural Gas Weekly Price Forecast – Natural gas markets form a bullish candle stick

Natural gas markets have rallied significantly during the trading session on Friday to form a bullish candle stick on the weekly timeframe. In fact, Friday was off by 4% or so, as we are looking at hot temperatures in the United States coming in August. If that’s going to be true, then there could be demand for natural gas to cool houses off. However, that’s a short-lived rally and therefore I’m looking for an opportunity to short this market again. We may need to consolidate the gains just a bit before that presents itself, and we will probably see it on the daily chart more than anything else.

NATGAS Video 08.07.19

Quite frankly, this over supplied market looks like it’s going to offer another selling opportunity rather soon, probably near the $2.50 level. I’m looking for an opportunity such as a shooting star to take advantage of. I have absolutely no interest in buying natural gas until we start talking about colder temperatures, as these rallies tend to be short-lived at best. You may not get an entry on the weekly chart though, so at this point looking at shorter-term charts to stay with the longer-term trend. You can make out a trendline on the weekly chart that coincides with roughly $2.55, so I think it’s only a matter time before we get our opportunity. This reaction was short-term traders taken advantage of a short covering rally more than anything else. I still believe that we go much lower despite what’s happened on Friday.

Please let us know what you think in the comments below