Natural Gas Weekly Price Forecast – Natural Gas Markets Continue to Power Higher

Natural gas markets have powered higher during the course of the week, to reach to a fresh, new high. Quite frankly, there is nothing out there that suggests that you should be a seller of this market, at least not yet. The heat wave in the United States continues to drive demand higher, which of course drives pricing higher. Furthermore, we also have the commodity boom in general that continues to have a bit of a knock on effect over here as well. With this, I think that the market probably continues to find reasons one way or another to go higher.

NATGAS Video 09.08.21

When you look at the daily chart, you can see a couple of bullish flags that measured for a move to $4.40, which lines up quite nicely with our consolidation area between $2.40 and $3.40 that we broke out of a couple of months ago. We have not reached the $4.40 level yet, but clearly at this point it does not take much in the way of imagination to think that we could get there. Ultimately, I think this remains a “buy on the dips” type of market, and therefore you have to look at it through that prism.

If the heat wave dissipates in the United States, that probably causes a huge crash so I think at one juncture we will probably see a massive selloff one day. Because of this you need to be cautious about your position size, it clearly the direction you need to be looking right now is upward, as the buyers have a strong grasp on the market.

For a look at all of today’s economic events, check out our economic calendar.