Natural Gas Weekly Price Forecast – Natural Gas Markets Have Volatile Weak Again

Natural gas markets have been all over the place during the course of the week, rising enough to fill the gap from the previous week, but also falling enough to test the lows. In other words, this is a market that is all over the place and it does make a certain amount of sense that we spend our wheels, as temperatures in the United States continue to look mild for most of the winter. Remember, this is a US centric commodity, and has nothing to do with Europe or Asia. That being said, in order to trade this market with any type of success, you need to be able to keep an eye on US weather.

NATGAS Video 20.12.21

Underneath, the $3.50 level should offer a significant amount of support, as we have seen the last couple of weeks test that area only to sit still. Ultimately, I think this is a market that probably tries to its way lower, but we may need to bounce a bit in order to build up enough selling pressure. After all, the market had fallen off of a cliff as of late, so to think that we would continue without any type of hesitation is probably a bit of a stretch. That being said, I am not surprised at all if this market does drop down to the $3.50 level, just aware that we may have been a bit overdone. At this point in time, the market clearly has no wherewithal to change the overall directionality of natural gas, especially as we are already getting relatively late in the season.

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