Natural Gas Weekly Forecast – Natural Gas Has a Bad Week

Natural Gas Weekly Technical Analysis

The natural gas markets gapped lower to kick off the overall trading week with fairly negative results, but it does make a certain amount of sense considering that the market also has to keep in the back of its mind that we are about to have warmer temperatures and that of course will drive down demand in the United States, which of course that’s what most of this contract is focused on. So, with that being said, we have to pay close attention to the $4.40 level above where we formed a bit of a double top, as that could end up being a significant barrier.

When we do fall, and we will eventually the $3.50 level will be the initial target, followed by the 50 week EMA and the trend line that is drawn on the chart. All things being equal, I do think we’ve probably peaked for the winter, we’ll just have to wait and see whether or not we do in fact get a bit of momentum to the downside.

There is the possibility maybe of a late winter storm, if that’s the case we might see another shot higher but we’ve got to be getting close to the end of it, and as a result, I think you have to assume that demand is, in fact, going to drop pretty significantly, and this of course will have a major influence on price. I do think that the cyclical sell-off is about to begin and now it’s only a matter of time. I’d be cautious with my position size, but I also recognize that you have a pretty decent swing trading opportunity here.

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