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

Natural Gas Weekly Technical Analysis

Natural gas shot straight up in the air during the week but gave back a lot of the gains. That being said, I don’t think this is necessarily a bearish sign. It just shows that we’re banging around and trying to figure out where we’re going next.

The $3 level, I believe, is an area that a lot of people will be watching. It’s a large, round, psychologically significant figure that has been important multiple times. So, with that being the case, I think you have to wonder whether or not if we pull back toward this area, we won’t get a bit of a bounce. In fact, that’s generally what I’m expecting.

I like the idea of buying dips in natural gas this time of year because we are heading into the coldest part of the year, especially in the United States and Northern Europe, which use most of the natural gas. With that being said, keep an eye on the uptrend line as well. Even if we break down below the $3 level, you’re still talking about a maximum drop of around $2.85. A little bit of patience probably goes a long way.

Eventually, I do think we will go looking toward the $4 level, but it is early in the winter contracts. We’re still only in November, and the end of next week will be December. That could be what pushes prices to the upside. I have no interest in shorting. Like I said, I only go long from this point of the year through late February, maybe. With that being said, I’m just looking for dips as an opportunity, and once I get a little bit better price, I’m willing to buy it and hang on.

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