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Natural Gas Markets Have Horrific Week

By:
Christopher Lewis
Published: Jan 21, 2022, 17:05 UTC

Natural gas markets initially gapped higher to kick off the week but have seen massive losses since then as demand certainly will be dropping.

Natural Gas Markets Have Horrific Week

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I have to say this every week, so forgive me if you have already read this. The Henry Hub natural gas contract, the one that most of you are trading in the CFD market, is a US contract. I get a lot of questions almost daily as to why futures are dropping when the cost of natural gas is so high in the European Union in Asia. It is because you are not trading the same market. Now that is out of the way, we can focus on the fact that we have filled the gap from a couple of weeks ago. This of course is a technical event that a lot of people will pay attention to. That being said, it will be interesting to see whether or not we continue to go lower, or if we have to have a bounce in the meantime.

NATGAS Video 24.01.22

For what it is worth, we are in the process of switching contract into the month of March, which is when you start to factor in spring. Yes, there may be some type a snowstorm in March just to punish those of us that the winter is finally over, but demand is certainly going to be falling. In other words, I look at this is a market that if it rallies, you should probably drill down to a short-term chart in order to take advantage of what I think will be an attempt to get down to the $3.50 level, followed by the $3.00 level, which is an area that has been quite attractive to the markets for what seems like ages.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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