Natural Gas Weekly Price Forecast – Natural gas markets four bearish candle for weekNatural gas markets fell during the huge portion of the week, after initially popping much higher. By doing so, it has shown that there is in fact going to be a lot trouble on the way up for the winter move.
Natural gas markets initially gapped higher after the drone attacks in Saudi Arabia could have possibly broken up the global supply. That could have people rushing toward natural gas to power factories and the like. However, we have pulled back quite a bit and we have reached towards the $2.50 level which is a large, round, psychologically significant figure. That’s an area that was a lot of resistance previously, so now it’s very likely that we will continue to go higher. That being said though, in the meantime it might be a bit noisy, but it does look like we are trying to get the Winter pop going.
NATGAS Video 23.09.19
On the daily chart you can see that there is a bullish flag in this area, so it makes sense that we would probably continue higher, and that flag measures for a move to the $3.00 level, and possibly just above. This is quite common for later in the year, but it is also very noisy later in the year until we can get some type of clarity about supply destruction. This is the time of year where Europe and North America need more natural gas for heating, so that obviously is a very bullish cycle. This normally runs until the early to middle part of January, so once you time the move correctly, it ends up being one of the best trades of the year. That being said, you may need to drill down to the daily chart in order to find a supportive looking candle to buy.
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