Natural Weekly Price Outlook – Natural Gas Continues to See Sideways Action for The Week

Natural Gas Weekly Technical Analysis

The natural gas markets rallied significantly during the course of the week as we continue to see very range bound action for the fifth week in a row. It looks as if the $2.50 level continues to be a bit of a floor. But at the same time, we see a lot of resistance near the $3.15 level, and thereby, I think you’ve got a scenario where traders are looking at this through the prism of whether or not anything changes.

We are in a cyclically somewhat positive time of year, but the cold weather hasn’t shown up, and that has a major influence on what happens next. If we can break higher and reach above the $3.15 level, then it’s possible that natural gas markets can truly take off. If we cannot, then we probably stay range bound for the next few months. Quite frankly, it is a little late in the year for this market to be struggling, so it’ll be interesting to see how this plays out.

But right now, it doesn’t look all that hot, to be honest. It looks more sideways and flatter than anything else. Because of this, I don’t really have a whole lot of interest in putting a ton of money in this market, but I do recognize that we have a situation where traders will have to look at this and ponder whether or not shorter term range bound sideways trading makes more sense, which right now I’d have to say there’s a pretty strong argument for that.

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