Natural Gas Weekly Price Forecast – Natural Gas Hold 200 Week EMANatural gas markets have gapped to kick off the week, pull back to fill that gap, and now looks set to go higher.
Natural gas markets have gapped to kick off the week, then turned around to test the 200 week EMA before bouncing again. Ultimately, this is the last “hurrah” of the winter and then we should have a nice selling opportunity. I think we go looking towards the $3.00 level above where I see a significant amount of selling pressure, not only on the daily chart but also here on the weekly chart. Underneath, I see a lot of support extending all the way down to the 50 week EMA which is at the $2.42 level.
NATGAS Video 21.12.20
What I am hoping to see is a nice spike higher initially, followed by a nice set up to start shorting again. Remember, we are heading into the spring contracts in a few weeks, and that will drive down the demand for natural gas as temperatures rallied again during the spring in the northern hemisphere. Having said that, we also need to worry about whether or not there are going to be slowdowns, as many economies around the world are being locked down, albeit temporarily. The candlestick from the week does not have a huge range, but it did hold the gap and that is probably the most important thing to pay attention to.
75% of retail CFD investors lose money
Natural gas does tend to move on short-term weather patterns as well, and it is not exactly the biggest market. It is because of this that you need to be cautious with your position size as sudden moves are quite normal. This will be especially true as we start to roll over contract into the springtime, but that something that we need to worry about in the middle of January itself.
For a look at all of today’s economic events, check out our economic calendar.