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

Natural Gas Weekly Technical Analysis

The natural gas market has fallen again during the course of the week as we continue to see a lot of questions asked about demand. We did have that heat wave here recently, that now is in the back mirror. And now it looks like we are just simply trying to sort out where we want to be between $3 and $4. I do think at this point in time, we are likely to see more of a negative tilt, but it’s probably going to be difficult to just sell or even buy and hold at this point. You’re probably going to have to do it on longer term charts via entries on the shorter term charts, something like a four hour or even the hourly charts.

Ultimately, this is a market that I think sees a $4 ceiling. And I do think eventually we will see this market break down below the $3 level. And when we do, it’s likely that we could drop down to the $2.50 level. This time of year is typically pretty poor, there is a lack of heating and generally mild temperatures in the northern part of the world. But we also have the Europeans importing natural gas from America. So that has kept this somewhat choppy. All things being equal, I think if you’re a longer term trader, you’re just looking for the range to continue and then maybe eventually in the next month or two, a drop that could send things lower, but patience might be needed.

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