Natural Weekly Price Forecast – Natural Gas Continues to See Buyers

Natural Gas Weekly Technical Analysis

The natural gas markets initially pulled back just a bit during the early hours on Monday, but the rest of the week has been relatively strong as the market has reached the $2.65 level. At this point in time, I do think that we are starting to trade the cyclical trade. And that generally means that we are trying to price in the cold temperatures later this year. Remember futures markets drive natural gas, not some CFD market that you might be trading in. Futures markets are looking ahead.

They look at the temperatures when the temperatures are cold and therefore, they’re pricing them in. This is why natural gas typically runs higher in late summer due to the fact that again, the pricing is a derivative of months like November. So, with that being said, I do think natural gas continues to go higher, although I don’t use a lot of leverage in this market, it’s just far too erratic, but it’s also worth noting that we’ve had three very strong weekly candlesticks in a row, and I do think that we could very well go looking to the $3 level.

Short-term pullbacks at this point in time should offer plenty of buying opportunities, especially near the $2.50 level, and then again at the $2.40 level. I have no interest in shorting natural gas. I’m just riding this higher until we get a big spike and you’ll know it when you see it. I’ll collect my profit and move on, as the volatility makes the natural gas markets so difficult to deal with at times.

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