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Natural Gas Weekly Price Forecast – Natural Gas Continues to Accumulate

By:
Christopher Lewis
Published: Apr 19, 2024, 15:27 GMT+00:00

The natural gas markets as essentially in a massive “accumulation phase” from what I see, as we are continuing to build up some kind of longer-term base.

In this article:

Natural Gas Weekly Technical Analysis

The natural gas markets initially pulled back during the course of the week, only to turn around and show signs of life. I believe that natural gas is still consolidating overall, and it is worth noting that we are at an extreme low that hasn’t been seen for like four years.

This is an area where I think a lot of people are looking to get involved because natural gas markets have collapsed. But whether or not we take off in the short term remains to be seen. The weekly candlestick is going to end up being a hammer, but it’s preceded by an inverted hammer. In other words, I think we are going to go back and forth.

And therefore, I think you’ve got a situation where accumulation continues to be the overall attitude. I’m not wanting to get overly aggressive in the natural gas markets, but I am involved in an ETF. That way I don’t have any leverage and I don’t have to worry about it. I will just simply collect profit when the market breaks out.

The $2 level above being a huge signal. All things being equal though, if you are trading the CFD market then just make sure you’re using a small position. Also, make sure to check the swap to make sure you are not paying too much. But that being said, this is a low leverage accumulation type of environment, meaning that we will eventually take off. I don’t know if it will be from a heat wave in the middle of summer, or if it will be heating demand in the fall and winter, but sooner or later this will pay me. In the meantime, I just sit in this position.

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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