Natural Gas Weekly Price Outlook – Natural Gas Has Another Positive Week

Natural Gas Weekly Technical Analysis

The natural gas markets have rallied rather significantly during the week to show signs of life again as we continue to threaten the same resistance barrier. Ultimately, I think you’ve got a situation where the natural gas markets are trying to sort out the lack of supply as it was a pretty cold winter and the idea that winter is almost over. So, I do expect a lot of noisy behavior in this market. And I think it’s probably only a matter of time before we get some type of significant sell-off. That being said, this is a very difficult time of year to trade because there are the last vestiges of cold weather.

But at the same time, sooner or later, storage tanks get filled. Yes, there is more in the way of exports coming out of the United States, but at the same time, sooner or later, the Northern Hemisphere warms up and demand drops drastically. I think we’re in the process of trying to sort that out right now. And as a result, you have to look at this through the prism of a market that quite frankly, just doesn’t really know what to do with the $4.50 region and still sees that as a major barrier.

That barrier being broken could open up a move to the $5 level, but I think it’s more likely that we will go back and forth in this area for a moment before falling back down. Right now, though, I just don’t have the setup or the signal to suggest that you should be shorting this market.

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