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

Natural Gas Weekly Technical Analysis

The natural gas market was initially soft during the trading week but did jump as we rolled over into the November contract, something that I figured probably would happen due to the fact that November typically will see more demand. Remember, natural gas is a very cyclical market, and therefore it makes quite a bit of sense that we would see natural gas jump on Friday specifically, as we start the rollover process to price in natural gas for November as demand will jump.

We did just bounce from a major trend line that goes back to the very beginning of 2024. And now we find ourselves at the 50 week EMA, above the $3 level now, that is a big victory as well. And it’s likely that natural gas will continue to go higher from here over the longer term. That doesn’t mean that there won’t be occasional pullback, but we are starting to think about the winter finally. And in the United States, natural gas demand will jump significantly.

Furthermore, GDP numbers suggest that the United States economy is stronger than originally thought, and if that’s the case, electricity demand could come into the picture as well. I don’t have any interest in shorting natural gas anymore, not this time of year, and not for the next several months. At this point, short-term pullbacks are probably going to be looked at, at least by me, as buying opportunities as we will try to grind our way to the $4 level.

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