Natural Gas Weekly Price Forecast – Natural Gas Markets Rally for the Week

Natural gas markets have rallied a bit during the course of the trading week to reach towards the 50 week EMA. At this point time, the market is very likely to continue the same consolidation area that we have been in, which is closer to the $4.10 level. That is an area that features a gap and on the daily chart the 200 day EMA. At this point in time, the market is likely to continue seeing that as a barrier that will be difficult to break beyond.

NATGAS Video 10.01.22

To the downside, the market is likely to see the $3.50 level as supportive, and I think at this point time we are simply going to go back and forth and try to figure out which direction to go next. The market will continue to be very noisy, but I do favor the downside due to the fact that not only have we broken down significantly, but we also have the triangle above that has been broken measures for a move all the way down to the $3.00 level.

For what it is worth, the 200 week EMA sits around the same area, but ultimately what I find much more interesting is the fact that the $3.00 level is an area where we had seen the market hang about for quite some time. All things been equal, any rally at this point in time will more than likely offer quite a bit of resistance, and therefore it becomes a selling opportunity. Warmer temperatures in the United States are doing nothing to help this market right now.

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