Natural Gas Weekly Price Outlook – Natural Gas Pulls Back for The Week

Natural Gas Weekly Technical Analysis

The natural gas market initially rallied during the week, only to turn around and show signs of hesitation and fell a bit to show extreme resistance. That’s not a huge surprise considering we are just starting to roll over into the colder months, as we are now in the November contract. Once we roll into the December contract, then things get really interesting as we start to price in winter. The $4 level, I do think, is the eventual target, but I also recognize that short-term pullbacks will find support at the $3 level, followed perhaps even by the uptrend line that has been so important for some time.

Either way, I don’t have any interest in shorting natural gas. I typically don’t at this time of year, because eventually that demand picks up due to colder temperatures in places like the United States or Northern Europe. If we can break above the top of the past two weekly candlesticks at $3.56, that would be extraordinarily bullish and almost certainly send us looking to the $4 level. Again, I remain bullish from the flip over into the November contract, but I also recognize that there could be a little bit of volatility. There is a gap to fill in on the daily chart. So, I welcome a little bit of a pullback that I can buy as soon as it starts bouncing again, probably triggering off the daily chart more than the weekly chart.

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