Natural Gas Weekly Price Forecast – Natural Gas Has Horrific Week

Natural Gas Weekly Technical Analysis

The natural gas markets have fallen pretty hard during the trading week as we continue to see a lot of noisy behavior, but now as we roll into the March contract traders are going to start to look at the idea that demand is probably going to be a serious problem for traders now. I think at this point in time, we may have seen the peak for winter, although there is the very real possibility that we will get a little bit of a bump based on the next winter storm, but the March contract is generally when we start to see selling again.

This is a cyclical trade. It is something that sees quite a bit of demand in the winter and then fades away. The noise from the end of 2021, going into 2022 and 2023 has more to do with the Ukraine situation, not necessarily actual demand, it was more about disruption.

So, what we are seeing now is a little bit more normal. I do think that rallies are to be faded at this point, and I would love to see one more winter storm that shoots this market in the air and then forms a long wick that we can take advantage of to the downside. That being said, when you look at the weekly candlestick for this past week, it looks horrific, and candlesticks like this very rarely happen in a vacuum.

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