Natural Gas Weekly Price Outlook – Natural Gas Has a Nice Recovery For The Week

Natural Gas Weekly Technical Analysis

The natural gas market initially fell during the week, but it recovered quite nicely to continue to pressure the $3.75 area. There is a zone between $3.75 and $4 that I think will continue to be difficult, but the candlestick itself is somewhat impressive. What I find particularly interesting is that a lot of this seems to be based on Europeans buying liquefied natural gas instead of the lack of demand that typically comes this time of year. That is coming, but right now it looks like the market is focusing more on US exports to the European Union.

As temperatures rise, they should drive down demand. And we have already seen what that can do during the previous month and a half or so. And now we’ve had a very nice bounce to the 38.2 % Fibonacci retracement level from the exact top. This is an area between here and the $4 level, which is just above the 50 % Fibonacci retracement level that I’m starting to look for signs of exhaustion. You probably won’t get the signal on the weekly chart. You probably will get it on the daily chart. But the weekly candlestick does look bullish.

So, I think we may have a fight on our hands for the next several days in the natural gas markets. Ultimately, this is a market that given enough time, I think does fall, but we’ve had one heck of a bounce in the recent two weeks or so. With that being said, I expect further volatility. And of course, the trade war situation continues to cause chaos everywhere. So natural gas is not immune to that.

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