Natural Gas Weekly Forecast – Natural Gas Markets Breakout
Natural Gas Price Forecast Video for 28.11.22
Natural Gas Weekly Technical Analysis
Natural gas markets have rallied significantly during the trading week, breaking above the $7.00 level. By doing so, the market has even managed to break above the $8.00 level, therefore it’s likely that we will continue to see a bit of a push higher. On the chart, you can make an argument for a trading range between $5.50 underneath, and somewhere near the $10.00 level above. These are extraordinarily high numbers, but quite frankly inflation continues to push everything higher and of course we are heading into the winter in the northern hemisphere.
The Americans are not going to be able to supply Europe with liquefied natural gas in numbers that everybody had hoped, so that has weighed upon pricing to a point, but at the end of the day demand will still be extraordinarily high. The Europeans also dropped the ball by allowing Qatar to sign a 27 year contract for LNG exports to China without jumping on that opportunity. In other words, Europe is going to have a lot to do with where we go next as they are in dire straits.
The size of this candlestick is rather impressive, and of course there have been rumors about the Ukrainians stealing natural gas from the Russian pipeline that is still going through their country while the 2 countries fight in a war. I can’t believe I just said that, but that’s an actual thing that has not only been going on, but was stated this past week. Because of this, I think that you really can’t count on any type of sanity in the market, especially considering that natural gas is one of the most volatile markets out there.
For a look at all of today’s economic events, check out our economic calendar.