Natural Weekly Price Forecast – Natural Gas Continues to See Selling

Natural Gas Weekly Technical Analysis

The natural gas markets had a rough week as we plummeted pretty significantly. At this point in time, you have to ask questions as to whether or not we have formed a massive double top and that will be on the minds of technical traders. That being said though, this is also a market that is very cyclical, and we are still focusing on winter and colder temperatures in the United States so that should drive up demand. However, some of the noise that you’ve seen lately has been because of the hurricanes and that destruction has come and gone, and we still have a viable natural gas industry in the United States.

So, with that being said, the disruptions were minimal, and we now see some profit taking and perhaps some of the hot money coming out of the market. I anticipate that somewhere near the $2.50 level, you will find value hunters and we probably bounce, but between now and then it looks like we are just simply exhausted. Natural gas is a very cyclical market and therefore this time of year, generally I’m long from late summer, early fall I start to buy, I make a decent profit, I dump it, and then I ignore it. Because quite frankly, what most people don’t understand out there that are watching this video is natural gas is about Henry Hubb natural gas contracts. Henry is Henry, Louisiana.

Henry, Louisiana is a major supplier for the northeast and part of the United States, as well as Asia, but a huge bulk of what causes the price to move is the northeastern part of the United States. It’s a solely American contract for the most part. So, with that being the case, you have to pay attention to weather patterns in the northeastern part of the United States. And if you know what they are, then okay, you have a shot at making a well-informed decision. As things stand right now, though, it looks like we are giving back some of those hurricane gains.

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