Natural Gas Weekly Price Forecast – Natural Gas Continues to See Volatility

Christopher Lewis
Published: May 24, 2024, 16:18 GMT+00:00

The natural gas markets rose rapidly during the week, only to see a lot of noise as we approached the $3.00 level, which is always going to be difficult to overcome.

In this article:

Natural Gas Weekly Technical Analysis

The natural gas market has shown itself to be a little exhausted at the moment, and it now looks like we are perhaps going to struggle with the $3 level above. That makes perfect sense.

It has been an important resistance previously and therefore I think a sell off here could send this market down below the $2.50 level towards the $2 level. It makes a lot of sense this time of year, but I’ll be looking to catch that with an ETF position because I don’t want the leverage. I don’t like chasing it here. And it’s also worth noting that a lot of this is based on short term weather patterns in the United States, meaning that, it’s been extraordinarily hot for this time of year.

So, you are seeing that reflected in the price as people crank up AC. but really, at this point in time, I think it’s short lived. I do think that we pull back and once we pull back, I’ll be looking to pick up a little bit of value that I can take advantage of through the ETF without leverage.

And I’ll just simply cash out at the next heat wave. Or maybe once we start talking about colder temperatures later this year. This is a market that continues to be overly depressed due to a massive amount of supply out there, and I think that’s a structural thing. Yes, you will have times like this in the past where we spiked due to, everything going on with Russia, but that’s a geopolitical thing. You can’t really bank on that being a driver though, so it is nothing more than a “Black Swan.”

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.

Did you find this article useful?