Natural Gas Weekly Price Outlook – Natural Gas Has a Strong Week

Natural Gas Weekly Technical Analysis

The natural gas markets have had a very strong week, slamming into the $3.50 region. The $3.50 region, of course, is an area that a lot of people have been paying attention to multiple times for both support and resistance. But we also have to keep an eye on the fact that there is a major uptrend line there. And of course, the time of year doesn’t necessarily lend itself to having strong natural gas markets.

As temperatures rise in the United States and Europe, that significantly drops the demand for natural gas. And of course, at the same time, if we do in fact end up having a recession, that will drop the demand for natural gas from an industrial standpoint, because natural gas is quite often used to generate electricity. That being said, this is a big candlestick that looks strong, but it stops right where you would expect to see selling pressure. And as a result, I’m looking very closely at shorter timeframes for signs of exhaustion in which to short this market.

The $3 level underneath is a major area of support that I think we’ll be watching. And if we can break down below there, then it’s likely that natural gas truly falls apart. I don’t have any interest whatsoever in buying natural gas, although I suppose anything’s possible. We could go higher, but really at this point in time, I’m looking for signs of exhaustion again so that I can continue to go short.

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