Natural Gas Weekly Price Forecast – Natural Gas Continues to See Plenty of Negativity Despite Positive Week

Natural Gas Weekly Technical Analysis

We are taking a look at the natural gas weekly chart and it is a positive candle, I can give it that, but we’re still at extreme lows. It looks like $1.50 is probably going to be an area of interest. And you can see why, I mean, it’s been a significant floor for some time.

The problem of course is when you go to the daily chart, you can see just how uninterested most traders are. Above $2, then I think you have people starting to jump in. If you’re a longer term trader, then you need to be patient. You perhaps need to trade an ETF, or at least use very little leverage because this is a market that may not have anywhere to be for quite some time. Keep in mind that we are heading into the slow season, and we’re already down here.

We may get a winter storm sometime between now and spring that could cause a short-term spike, but beyond that, you’re not looking at a market that is likely to continue to have any follow through. Quite frankly, they find more natural gas every day, so it’s not exactly a rare commodity anymore. So, keep that in mind. I’d be very cautious, and I certainly would cut down on any leverage if I chose to buy this market. As far as selling this market is concerned, it really can’t go too much lower because eventually drillers will just stop producing.

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