Natural Gas Weekly Price Forecast – Natural Gas Continues to Rally All Week

Natural Gas Weekly Technical Analysis

The weekly candlestick from the natural gas market is very bullish and has slammed into the $2.50 level. All things being equal, this is a market that I think continues to find buyers on dips. And I do think that we just escaped a short term basing pattern.

That doesn’t necessarily mean that it’s going to be easy to go much higher. And therefore, I think short term pullbacks probably offer buying opportunities. But I would not be overly aggressive in this market simply due to the fact that this is typically a very weak time of year. But we had gotten to the point where the idea that natural gas was going to be so poorly priced that drillers were losing money.

So, with that, you can’t get involved in that area on the short side. Sooner or later, somebody had to start buying based on the inevitable rally. So, the question now is whether or not this is going to become a short squeeze. It might, but it’s still going to be somewhat limited. I think $3 is about as high as it can get outside of cold weather or some type of heat wave.

There are exceptions, for example, geopolitical issues with Russian gas and the European Union, which is part of what’s been driving this as of late. That has reared its ugly head again. But either way, I think you’re looking for pullbacks. You know, a weak day or 2 or 3 and then entering based on some type of resumption of momentum.

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