Natural Gas Weekly Price Forecast – Natural Gas Markets Plummet

·2 min read

Natural gas markets have gotten absolutely slaughtered during the course of the week, slamming into the $4.00 level. The market has seen plenty of downward pressure due to the fact that winter in the United States is supposed to be much more mild than other places. Keep in mind that Henry Hub natural gas is a uniquely American situation. After all, the Americans do not export much in the way of natural gas, so quite frankly it has very little to do with what is going on in places like Europe and Asia.

NATGAS Video 06.12.21

The size of the candlestick and loan is reason enough to think that this market probably is a “sell on the rallies” type of situation. The $4.75 level should continue to offer significant resistance as it was the bottom of a major triangle. Quite frankly, natural gas has peaked for the winter unless something drastic happens, and at this point in time I believe we are looking at a scenario where traders are trying to figure out where we are going to go longer term. Based upon the measured move of the triangle, the market could go as low as $3.00, which is an area that has been important more than once.

It is not until we break above the top of the candlestick for this past week that I would consider buying this market, because quite frankly it has shown itself to be so negative. Ultimately, this is a market that will continue to be noisy, but that is nothing new for natural gas as it is highly reliant on the latest weather report.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


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