Natural Weekly Price Forecast – Natural Gas Continues to Sort Out The Summer

Natural Gas Weekly Technical Analysis

The natural gas markets initially did rally during the course of the week, but then turned around to show signs of hesitation. All things being equal, this is a market that I think is continuing to pay close attention to the $3 level above as a significant resistance barrier. If we were to break above there, then the market could open up a move to the $3.50 level. But at this point, I just don’t think that happens very easily. This is the third shooting star in a row that we have formed and that does suggest that perhaps we are going to eventually pull back.

That makes a lot of sense because at this time of year, typically there is not a massive demand for natural gas. There was a heat wave in the United States that has passed. So eventually we will refill the storage tanks in America. And that of course will have prices dropping. I don’t necessarily want to short the market. I think this is more or less a buy on the dips type of situation. And if you’ve been following me here at FX empire, you know that I am involved in natural gas via an ETF, which means that I buy no leverage. I just buy it as an investment. I do think eventually we break above the barrier, but it’s probably a late summer story, unless of course we get some type of geopolitical move or another heat wave.

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