Natural Gas Weekly Price Forecast – Natural Gas Markets Form a Hammer

Natural gas markets have fallen during the course of the week to test the 50% Fibonacci retracement level from the most recent move to the upside. On the other hand, we have turned around to show signs of life and therefore I think it is likely that we are going to continue to grind to the upside. The previous week has formed a massive shooting star, which of course contradicts what we have just done over the last week. That being said, the market continues to hover around the $5.00 level, an area that of course will attract a lot of attention.

NATGAS Video 27.09.21

At this point, longer-term traders will be paying close attention to both the shooting star and the hammer, because if we break either one of these candlesticks, it is likely that it will kick off a bigger move. If we break down below the bottom of the hammer, that opens up a move towards the $4.50 level, where we might see a little bit more in the realm of value hunting. On the other hand, if we were to turn around a break above the top of the hammer, then we will probably test the top of that shooting star. Breaking above there could then open up another massive move to the upside.

At this point, the market continues to see a lot of indecision, but I think longer term we continue the overall trend. If we were to drop down below the $4.50 level, then I think you have to look at the possibility of a collapse, which quite frankly after this type of parabolic move is something that is still possible.

For a look at all of today’s economic events, check out our economic calendar.