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Natural Gas Weekly Forecast – Natural Gas Continues to See Overhead Resistance

By:
Christopher Lewis
Published: Apr 12, 2024, 16:06 GMT+00:00

The natural gas market has attempted to rally this past week but gave back gains to show signs of weakness above. After all, this is a market that has been bearish for some time.

In this article:

Natural Gas Weekly Technical Analysis

The natural gas markets initially rallied a bit during the course of the trading week, but then gave back gains and we have seen a lot of negativity. That being said, this is a market that I think will eventually find some type of footing and we will go higher.

But I also recognize that we have a situation where you’re going to have to be very patient. So, with that being said, I think you have to consider this a market that, maybe an ETF or a CFD position. I myself own ETF shares, and I’ll just let the market do what it does. This time of year, is typically very quiet.

If you look back to 2020, the market was very quiet until the middle of the year and then rallied. We may very well see that again as traders start to price futures for fall and winter. So, the best way to do this is just simply take the leverage out of the position. You clearly can’t shorten this market for any significant move at this point.

The $1.50 level underneath has been like a blower multiple times going back multiple years. Nonetheless, we have a lot of work to do before we actually start to look overly bullish. So, patience will be key to making money in the market to the upside, as there has been a significant sell off that has ruined a lot of traders. Fear of buying is certainly going to be a very real thing in this market. This is part of why no leverage should be used if possible.

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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