Natural Gas Weekly Price Forecast – Natural Gas Reaches 50% Level

Christopher Lewis

The natural gas markets have fallen again during the course of the week, slamming into the 50% Fibonacci level.

Natural gas pipes, FX Empire

In this article:

Natural Gas Price Forecast Video for 04.12.23

Natural Gas Weekly Technical Analysis

Natural gas markets have fallen a bit during the trading week, reaching down to the 50% Fibonacci level from the massive move that we previously had seen. Keep in mind that natural gas had rallied 40% before we pulled back, so we are still 20% off the bottom. Yes, there are a lot of concerns about supply being overdone at the moment, but there’s also the cyclical trade that we will have to pay attention to. It is because of this that I look at natural gas as an investment and not a trade, and quite frankly futures markets are almost impossible to deal with unless you have a large account.

I find this trendline underneath as an interesting place, and I do think that it’s also interesting to see that even though there has been relentless pressure to the downside, the last 3 days of the week has seen quite a bit of support come back into the market. It’ll be interesting to see how this plays out, but I think if we can break above the top of this candlestick, then we could go looking toward the $3.33 level above. If we can break above there, then we could really take off to the $4.00 level. That being said, it’s worth noting that there has been an over expansion of drilling as of late, which also has been a bit of a problem for this market. Regardless, I am still invested in this market for the cyclical trade, probably looking to get out sometime in early January. For short-term traders, this is an extraordinarily dangerous market to be in.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?