Natural Gas Weekly Price Forecast – natural gas markets break down

Natural gas markets broke down significantly during the week, slicing through the bottom of a massive triangle that had formed after consolidating in this rather high level. People were worried about an oversupply of natural gas, which could only at best be a temporary thing, but now we are looking at the situation where futures markets will start to focus on Spring, which of course will drive down demand. Beyond that, the United States has over 300,000,000,000,000 ft.³ of natural gas in the ground that they know of, so it’s hard to think that natural gas markets will rally for the long term. After this massive candle stick, I think that rallies will be faded, and there are a couple of gaps below that need to be tested.

NATGAS Video 17.12.18

I would expect in the immediate future, we should probably see a bit of a dead cat bounce, but this is the beginning of the end for the high pricing in natural gas. We had gotten so overbought that it was only a matter time before we broke down, and that now looks to have happen. I have no interest in buying natural gas, and I would also point out that the candlestick from the previous week has now been confirmed as a “hanging man” in the sense that it was broken down through the bottom. There is nothing bullish about what we are looking at right now, and therefore I will be looking to sell at the first signs of failure.