Natural Gas Markets Exploded to the Upside During the Week

Natural Gas Weekly Technical Analysis

Natural gas markets have rallied during the course of the week as we continue to see a major push higher. At this point, the market looks as if it is trying to figure out what to do as there is so much in the way of resistance. If we can break through this area, we enter somewhat unchartered territory, as it would perhaps open up the possibility of a “blow-off top.” However, if we fail in this area, it could be the top of a massive consolidation area. At this point, it is far too early to tell, but I do think that eventually, we will get some type of answer.

The question now is whether or not the warmer temperatures that are coming in the United States will drive down demand more than enough to have an influence on what happens next with the markets. As things stand right now, it certainly looks as if we are at a major crossroads, because if natural gas continues to explode to the upside as it has, it is only a matter of time before demand destruction begins, and therefore prices will fix themselves anyway. When you look at this chart, it has the feel of the WTI Crude Oil market a couple of months ago, so be interesting to see how this plays out.

The size of the candlestick is rather impressive of course, but you should also keep in mind that it is only so much you can read into that as natural gas markets do get a little illiquid at times. Furthermore, a cold snap in the northeastern part of the United States this weekend has had something to do with what we are seeing, so as that dissipates, it is possible that we could pull back as well.

Natural Gas Price Forecast Video 11.04.22

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