Natural Gas Weekly Price Forecast – Natural Gas Markets Break Through Barrier

Natural gas markets have rallied significantly during the course of the week, topping the $3.40 barrier that had been so difficult to get above previously. That being said, now that we are reaching towards the $3.50 level, it becomes clear that the natural gas markets have plenty of momentum underneath them and have the very real possibility of overheating. Based upon the “measured move” of the “W pattern”, or perhaps the rectangle depending on what your viewers, we could have a move all the way to the $4.40 level.

NATGAS Video 28.06.21

There is a lot of demand for natural gas in the western part of the United States as there is a significant heat wave, but at the end of the day there is a major oversupply of natural gas so I think that if we do get a sudden spike this summer, it will be somewhat limited due to the fact that we have a longer-term cyclical oversupply of the commodity. At this point, I think that the natural gas markets are getting a huge boost from the overall “commodity boom”, so while there is a pickup in demand, it also is simply a reflection of what is going on in the larger commodity markets.

To the downside, if we break down below the bottom of the candlestick for the week, that could be very negative, sending the market down towards the $2.50 level. That seems to be less likely right now though, so I think that what we probably see is some type of major resistance barrier above that will eventually show itself. In the short term, buying the dips continues to be a scenario.

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