Natural Gas Weekly Price Forecast – Natural Gas Continues to Look Bullish

Natural Gas Weekly Technical Analysis

The natural gas markets have rallied rather significantly during the course of the week to reach all the way to the $3.40 level in the spot market but have since given back quite a bit of the gains. The $3.40 level of course is an area that has been important multiple times in the past. So, it’s not a huge surprise to see that barrier held. However, the question is, where do we go from here? We are currently hanging around just above the $3 level, an area that previously had been resistant as well. And we do have colder temperatures in the United States. It’s actually pretty cold today in the Northeastern part of the country at the moment, so demand could pick up again.

So, if we continue to see that be an issue, then it is very likely that demand for natural gas will kick up. There’s also the possibility that maybe this has a little bit to do with what’s going on in Ukraine. Just the simple transmission of natural gas will cause more demand for US natural gas, which is what you’re trading, from Europeans, so that can come into the picture as well. We saw this back at the beginning of the Ukraine war in that winter.

So, with all of that being said, I think you do have a situation where there is more upward pressure than down and short-term pullbacks probably offer buying opportunities. If we do clear $3.40, natural gas could go screaming higher.

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