Natural Gas Weekly Price Forecast – Natural Gas Continues to See Buyers

Natural Gas Weekly Technical Analysis

The natural gas market initially dipped a bit during the early part of the week, only to turn around and recapture the $2.40 level. By doing so, the market then broke above the $2.50 level, showing signs of strength again. And now that we are above there, I think you’re probably going to see a little bit of FOMO trading.

And this makes, I guess, a certain amount of sense, considering that we are heading into autumn, which is a higher demand season for natural gas in the United States. If we can break above the high of the week, then I think it’s very likely that the natural gas market goes looking to the $3 level. Short-term pullbacks at this point, I think, will more likely than not see plenty of support near that 50-week EMA.

If we were to break down below the bottom of this candlestick, then we could see natural gas go looking to the $2.20 level, but ultimately, this is a market that is cyclical, it is seasonal, and we are getting into that time of year. There’s also the outlier story of Chinese crude oil demand dropping while natural gas demand is picking up as they bring large vehicles into the natural gas spectrum.

If that ends up being the case, that helps as well. But I think more than anything else, this is just the typical cyclical trade. If that’s the case, then we should continue to see buyers on each and every dip, and therefore people will be chasing the momentum.

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