Natural Gas Markets Find Buyers on Dips During the Week

Natural Gas Weekly Technical Analysis

Natural gas markets have gone back and forth during the course of the trading week, initially dipping lower but only to turn around and show signs of life again. Ultimately, this is a market that is pressing up against a major resistance area, so now the question is whether or not this is going to be a hammer that leads to more extension on the upside, or will it become a “hanging man?” It will be interesting to see if this weekly chart closes because it could give us a major signal.

It is worth noting that the $5.50 level is an area of importance multiple times, so it is quite interesting that we have tested it during the day. If we were to break down below the bottom of the candlestick for the trading week, that could open up a “hanging man” signal, meaning that we would see a lot of selling pressure down to perhaps the $5.00 level. At this point, there will be a lot of noise, based on Vladimir Putin insisting that Russian rubles are to be used to pay for Russian natural gas.

The theory is that Germany will refuse to do so, and therefore will buy US LNG next year. If that were true, it would certainly be a major shift in the markets, because the Henry Hub contract typically is gas that is used in the United States only. The market trying to front-run that move is probably a little overdone, but as you can see around the world currently, getting overdone is not a major problem.

Natural Gas Price Forecast Video 04.04.22

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