Natural Gas Weekly Price Outlook – Natural Gas Has a Tough Week

Natural Gas Weekly Technical Analysis

The natural gas markets initially did rally a bit during the trading week but fell again to show signs of hesitation. Ultimately, the natural gas market is going to have to take into account the fact that heating demand is dropping. And of course, we also have to keep in mind that the electricity demand may be dropping as well, not from a cyclical standpoint, but from the fact that the United States is expected to enter recession soon, although I think there’s a little bit of an argument that it may not be that big of a deal, but it does add to the reason for natural gas to fall.

So having said that, we’re testing the 200-week EMA. We did bounce a little bit from there, but if we break down through there, I think the bottom falls out in natural gas and we continue to see natural gas struggle. I don’t really have a scenario in which I am a buyer of natural gas this time of year. I just wait for rallies that show signs of exhaustion and sell into them.

But if you’re a longer term trader, you will have to drill down to at least the daily chart in order to make that move. I have, again, no reason whatsoever to buy natural gas. And I think the ceiling is probably close to $3.80, maybe $4 at the very most. I remain bearish. I do think that we drift into the summer with lower natural gas prices.

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