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Natural Gas Weekly Price Forecast – Natural Gas Markets Find Support at $3.80

By:
Christopher Lewis
Published: Aug 20, 2021, 17:01 UTC

Natural gas markets have fallen a bit during the trading session only to turn right back around and show signs of life yet again.

Natural Gas Weekly Price Forecast – Natural Gas Markets Find Support at $3.80

In this article:

The natural gas markets initially plunged during the course of the week to break down below the $3.80 level but has turned right back around to show signs of life again. Ultimately, this is a market that will continue to see the same range tested that has been before, between $3.80 and $4.20. The market looks as if it is trying to catch its breath after the major move to the upside, as the market may have gotten ahead of itself.

NATGAS Video 23.08.21

If we break down below the bottom of the candlestick for the week, then it is likely that the market could go looking towards the $3.50 level, possibly even down to the $3.40 level as it was the top of a larger “W pattern” that we broke out of. When you look at this chart, you can see that we have been very bullish for a while, and the fact that the market is extended is probably to be expected. Buying on the dips probably will be the way that the market is approached in the short term, as quite frankly this is a market that is still moving based upon the heat wave in the United States and of course the idea of the reopening trade.

That being said, we are very concerned about the overall risk appetite of the market, as the economic figures out of places like China are starting to slow down. Because of this, it is very possible that the markets have gotten fairly close to the top, and they may plunge given enough time. That being said, I am not willing to short it yet, but I certainly think there will be a nice trade given enough time.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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