Natural Gas Weekly Price Forecast – Natural Gas Markets Have Choppy Week

Natural gas markets have spent most of the week chopping around, and while you cannot see it on the weekly chart, it ended up confirming a bit of a bullish flag. Because of this, if the market were to break above the top of the candlestick for the past couple of weeks, then it is very likely that the market could go looking towards the $4.00 level next. Based upon the previous consolidation in the “W pattern” that we had broken out of, the market should go looking towards the $4.40 level. For what it is worth, the bullish flag on the daily chart also suggests that we could go to $4.40.

NATGAS Video 12.07.21

What I like about this candlestick is that we had recently broken above a major resistance barrier, but during this week we have dipped, only to turn around and find buyers try to pick this market up. With that in mind, it does suggest that we should eventually go higher. At this time of year, typically it is a very weak market, but with the heat wave in the western part of the United States rating on, that does provide the catalyst to go higher. Yes, there is a bit of the commodity boom in general, but natural gas itself is being moved by cooling demands more than anything else right now.

As economies around the world continue to reopen, that will also drive up demand for natural gas. I anticipate that we probably have several months’ worth of strength left in this market, as we will start to look towards fall temperatures in the next couple of months.

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