Natural Weekly Price Outlook – Natural Gas Continues to Sit in Middle of a Range

Natural Gas Weekly Technical Analysis

The natural gas markets have rallied during the week as we are now testing a significant previous uptrend line, an area that has quite a bit of influence, but really at this point in time, you would see a lot of choppiness. A lot of times this time of year, you will see a lot of selling short-term rallies. I do think it offers up a shorting opportunity, but all things being equal, this is a market that is in a range between the $3 level on the bottom and the $4 level on the top.

In general, this is a market that I think is probably just going to drift sideways for the next couple of months with more of a downward pressure on it due to a lack of overall heating demand. That being said, the Europeans continue to import natural gas from the United States, so this winter going into summer was a bit different and now I think we’re just going to trade in this range.

I do feel more comfortable fading signs of exhaustion and shorting this market, but I’m not looking for a major plunge anymore. This is a market that’s just killing time. That can be said about most assets right now. So I don’t know if natural gas is anything different than anything else.  If we do get a breakdown below the $3 level that could kick off a massive drop, but right now I just don’ see it as being likely.

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