Natural Gas Weekly Price Forecast – Natural Gas Markets Break Down
Natural gas markets fell hard during the course of the week, slicing below the $2.00 level on Friday, before bouncing a bit. Quite frankly, we are in an area where we should see a lot of buyers jumping in, but I would not be the first one to get involved. After all, this is a market that is very volatile and natural gas is a bit trickier to trade than most other markets because it is still localized to the United States. This is what has always caught me by surprise is how many foreign readers will write me emails asking about natural gas. The biggest problem with trading natural gas is it is all about the Gulf of Mexico 99% of the time. So, unless you know what is going on there, it is difficult to determine what is going to happen next.
NATGAS Video 21.09.20
The hurricane season has failed to wipe out natural gas production so that has allayed some of the fear that drove prices higher. Nonetheless, we are getting closer to colder temperatures and therefore demand will pick up. We are sitting right on top of the consolidation area underneath that should now offer support. Because of this, I do believe that the bounce is coming but it is probably going to be shown on daily charts more than weekly charts. All things being equal, I do think that we go higher but you probably need to find a little bit more granular of a trade to put money to work, meaning a lower timeframe to move right along with the weekly chart.
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This article was originally posted on FX Empire
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