Natural Gas Weekly Price Forecast – Natural Gas Shows Hesitation

Christopher Lewis
Updated: Jun 23, 2024, 04:26 GMT+00:00

The natural gas markets initially tried to rally this week, but turned around to show hesitation as it looks like the $3 level is too much.

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Natural Gas Weekly Technical Analysis

The natural gas markets initially tried to rally for the week but have since given back quite a bit of the gains to show weakness. After all, this isn’t the time of year that natural gas typically does well, so it’s not really a huge surprise to think that perhaps we pull back from what is a massive resistance barrier in the form of $3. Anything above $3 would be pretty extraordinary for this time of year, and I don’t care about the heat wave. Quite frankly, it’s almost over.

So, with that, we will more likely than not continue to see a little bit of negativity in this market, perhaps trying to find balance at lower levels. If you’ve been following me, I am long in this market, but via an ETF, so I don’t really care about the day-to-day fluctuations, because the volatility in natural gas is an absolute killer of retail accounts.

So therefore, either small positions or ETFs are the only way to go. You can’t leverage to natural gas. It just can’t happen. It’s a great way to destroy your money. That being said, if we were to take out the $3 level, then $3.25 would be the next target. But quite frankly, I’m looking at this pullback as an opportunity to buy low levered or even ETF positions for the fall when temperatures drop, and you see more natural demand. This heat wave.

It should be over in the next couple of days, and therefore I think you’re starting to see the market take its profits.

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.

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