Natural Gas Weekly Price Forecast – Natural Gas Markets Give Up Early Gains

Natural gas markets have rallied during the course of the week, but you can see pulled back from the 50 week EMA as the milder temperatures in the United States continue to plague the market. Quite frankly, this is one of the worst performing markets that I follow and therefore I have nothing good to say about this chart from a construction point of view. If we break down below the bottom of the candlestick for the week, I think we go looking towards the $3.00 level, which is my longer-term target anyway. Rallies at this point obviously should be looked at with suspicion, because the immense amount of selling pressure does not just simply disappear one day.

NATGAS Video 27.12.21

Looking at this chart, there is a big gap right around the $4.17 level, and I think that will continue to be the ceiling, so the closer we get to that area the more interested I am in shorting. I have Apsley no interest in buying this market, it is absolutely horrible looking, and as we continue to move forward through the year, we are going to be trading spring contracts very soon. Demand falls off of a cliff at that point, so prices do the same. It is a cyclical trade that I play every year, so quite frankly now it is just about getting the nice set up to start shorting again.

My email box has been full of people wondering why natural gas markets are as low as they are, and it is because it is a US contract. I know what is going on in Asia and Europe, but that has got nothing to do what is going on in this market.

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