Natural Gas Weekly Price Outlook – Natural Gas Continues to See Sideways Range

Natural Gas Weekly Technical Analysis

The Natural Gas markets initially did rally significantly during the course of the week to reach towards the $3.15 level, only to turn around and show signs of weakness. In fact, it looks like the weekly candlestick might end up being a shooting star at the top of the range that we have been in for a while. Because of this, I think you have to assume that we are just going to get more of the same, more of the same back and forth trading and we are at the top of the range. That being said, this time of year does tend to be very bullish for natural gas, so if we get any type of sharp correction, that might end up being a buying opportunity based on value.

A break above the $3.15 level could get the natural gas markets cooking really hot, especially if we get cold temperatures in the northeastern part of the United States, like a nice snowstorm or something, but we’re a little early for that, so I think we may have some work to do. Keep in mind that part of the reason the market shot up towards the $3.15 originally was because was due to those hurricanes. Well, we don’t have hurricane issues anymore.

So now it’s going to come down to whether or not there is enough cold weather in the United States to drive up demand. There’s also the outside chance that electricity demand picks up for whatever reason, and that can have an effect on that gas as well. But really at the end of the day, this is a market that looks like it is just going to continue to consolidate, at least until we get some reason to get bullish again.

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