Natural Gas Weekly Price Forecast – Natural Gas Markets Continue Bullish Momentum

Natural Gas Weekly Technical Analysis

Natural gas markets have rallied rather significantly during the course of the trading week to reach the $8.50 level. We have given back some of the gains, but it looks like there are buyers on dips when you get a bit more granular with the chart. With this being the case, I think the market will eventually find buyers on dips, and as long as we can stay above the crucial $6.50 level, this is a market that will have to be looked at through the prism of bullish pressure.

There are still a lot of concerns when it comes to Russia and Ukraine, and the disruption of natural gas to the European Union. This contract happens to be for the United States, but Europeans are trying to buy up as much natural gas as possible. Whether or not they actually receive as much as they are looking for is a completely different question, but clearly, there are plenty of speculators out there willing to jump on this bandwagon. I do think there is probably quite a bit of momentum still out there, and as long as we stay above that floor at the $6.50 level, you have to be looking at dips as potential opportunities.

However, it is going to be difficult to trade this from the weekly chart, as we are so far overbought. You can see that it looks like we are trying to form some type of consolidation region, perhaps between $6.50 and $9.00. That is a huge region, and in order to get the appropriate risk to reward ratio, you will almost certainly have to trade the daily chart.

Natural Gas Price Forecast Video 23.05.22

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