Natural Gas Weekly Price Outlook – Natural Gas Continues to Drift Lower

Natural Gas Weekly Technical Analysis

The natural gas market has fallen significantly during the week, but we are still within the same range that we have been in. We are about two weeks from rolling over into the December contract, and that typically is very bullish for natural gas. And when you look at this chart, you can see that we are right here around the $3 level. And I think it’s probably only a matter of time before we bounce. The uptrend line, of course, should offer support, and I think it offers a bit of a floor in the market. If we turn around and break above the $3 level, then we could go looking for the 50-week EMA.

Keep in mind that the temperatures in the United States and Europe will be plunging soon, and that will drive up demand for natural gas. In fact, I’ve personally had to turn on the heat a couple of times recently, and we are getting to that time of year where that demand really starts to pick up. If we break below the bottom of the uptrend line, then that would be an extraordinarily strong sign, and it would be a bit odd this time of year. So, I’m still looking for a bounce to take advantage of the cycle, as we will eventually go looking to the $3.50 level.

And then eventually the five or the $4 level, the $5 level above, could be a target over the long, long term. But right now, I’m focusing on the next 50 cents or so, which of course, is a reasonable move uh over the next month or so. I also recognize that once we roll into that December contract, much like the November contract, it wouldn’t be surprising at all to see a bit of a gap to the upside.

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