Natural Gas Weekly Price Forecast – Natural Gas Markets Choppy for the Week

Natural gas markets have gone back and forth during the course of the week to show hesitation, as the market continues to hang about the $3.65 level. At this point in time, the market looks as if it may be trying to simply decide whether or not it is going to digest the major gains that we have seen of the last couple of months, or if we are going to see some type of significant pullback. At this point time, the market is very likely to see more digestion than anything else.

NATGAS Video 19.07.21

All things been equal, this is a market that could go as high as $4.40 based upon the measured move of the consolidation that we previously had broken out of at the $3.40 level. Beyond that, there is also a daily “bullish flag” but also measures for that same move. Nonetheless, if we were to turn around a break down below the $3.40 level, then it is possible that we could see more of a selloff but as long as we continue to have hot temperatures in the United States Western region, it is likely that we continue to see a lot of natural gas demand.

Typically, this is a very weak time of year, but we obviously have a different situation this year as the heatwave has cause such a dramatic demand in natural gas due to the heatwave, but we also have the massive reopening trade that is putting strains on the commodity sector in general. As long as that is the case, it might be a bit of a “knock on effect” in this market as well.

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