Natural Gas Weekly Price Outlook – Natural Gas Continues to Power Higher

Natural Gas Weekly Technical Analysis

The natural gas markets have ramped up to the upside during the course of the week and have broken above a significant amount of resistance. Because of this, it appears that the market is likely to continue grinding higher, perhaps trying to get to the $4 level. Short-term pullbacks will almost certainly be bought into as the momentum is really starting to take off. You could make an argument for some kind of weird random rounding bottom, or you could just say it’s cold in the Northeastern part of the United States, so therefore it makes a certain amount of sense that you would see natural gas rally.

I think it’s the cyclical trade coming into play and it is worth noting it’s been a little colder earlier here this year than many others. I think we have further to go. Short-term pullbacks, like I said, should continue to be buying opportunities with the $3.40 level being a significant support level. Anything below there could be somewhat ugly but would just put us right back into the previous consolidation. I don’t know if natural gas will launch here rapidly, but it certainly looks like it is trying to grind to the upside. And this time of year, it’s prudent to think of this in one direction, not two. You should not be shorting natural gas in the dead of winter in the United States. It’s just a fool’s errand.

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