Natural Gas Weekly Price Outlook – Natural Gas Falls for the Week

Natural Gas Weekly Technical Analysis

The natural gas market has fallen pretty significantly during the trading week to reach towards the $3.50 level. But I think ultimately, we have a scenario where traders are going to look at the overall situation with potential demand being a little bit weak, despite the fact that there’s a little bit of a counterbalance here with the Europeans importing US Nat Gas. So, with all of that being said, I do think we get a lot of push-pull, but sooner or later, the mild temperatures are going to overwhelm the supply. If we do break down from here, the $3.12 levels in area that I’ve been paying attention to quite closely, right along with the $3 level. If we can break through that, the bottom is going to fall out of natural gas.

Any rally at this point in time opens up the possibility of a move to the $3.85 level and above there, $4. That is very unlikely from what I can see, but ultimately this is a scenario where I still favor fading short term rallies, but the longer term rallies probably aren’t going to come. So, I favor the downside, but I probably will have to scale down to like a 15 or even 30 minute chart to get those entries when the market looks tired. I also recognize that there isn’t a lot of momentum in either direction. So, it’s very difficult to be long term with this, although I do think that in the next couple of months, we will see a breakdown.

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