Natural Gas Weekly Price Outlook – Natural Gas Has Choppy Week

Natural Gas Weekly Technical Analysis

The natural gas markets have been all over the place during the course of the week, initially gapping lower and then bouncing around to show signs of hesitation. At this point, it’s not overly surprising to see that because we are in the phase of the year where traders are starting to focus on the fact that spring is coming and in fact, we are getting ready to roll over to the March contract. So that could have some negative influence. Not right away, but eventually we do start to drift lower due to a lack of demand in the northern parts of the world.

So, the question is have we peaked for the winner? We might get another bounce, but I think at this point in time you’re somewhat playing with fire if you’re looking to get overly aggressive to the upside, barring something in Europe kicking off another bullish run. If you take the inverted head and shoulders and measure out the move, we basically hit that move.

So ultimately, I think this is a market that we’re in a state of flux and it will probably be very neutral for the several weeks between now and the end of the winter contract. But short-term traders may be able to take advantage of dips. I think longer term traders are going to wait for signs of exhaustion and start shorting.

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