Natural Gas Weekly Price Outlook – Natural Gas Rallies Within Consolidation

Natural Gas Weekly Technical Analysis

The natural gas market has rallied pretty significantly during the course of the week as we have threatened the top of this consolidation area that has made up the bulk of the trading for the last six or seven weeks. At this point, I would pay close attention to the $3.86 level as it is an area that has been very resilient as far as its resistance is concerned. If we can break above $3.85, then we could go looking to the $4 level as a major potential target for those who are bullish on natural gas longer-term.

This is a market where if we pull back from here, there is plenty of support just below, near the 200-week EMA as well as the 50 week EMA. Anything below there, then opens up the possibility of $3.12. The $3.12 has been massive support, and really at this point, I think we are just kind of stuck in a range. I don’t really know that there’s a whole lot to do here, other than trade short term and look for shorter term trades in this range.

I do favor the downside this time of year, but we have seen a lot of stubborn buying due to the European lack of Russian gas, so they are buying more from the United States, which, of course, is a major influence on this particular contract. Ultimately, I do think that we will drop, but we may have some noise over the next couple of weeks to deal with.

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