Natural Gas Price Outlook – Natural Gas Continues to See Pressures

Natural Gas Technical Analysis

The natural gas markets have been fairly quiet during the early hours on Friday as we are waiting to see whether or not we are going to bounce or if we are just simply going back and forth in a consolidation pattern. With that being said, the market is likely to continue to see a lot of questions asked about it. But I also think that the market has a lot of technical support just below.

After all, we have the 50-day EMA, which of course is an indicator that a lot of people will watch, is reason enough to pay attention. Even if we break down below the 50-day EMA, the 200-day EMA is just below there as well. So, I think everything at this point in time does more or less suggest that we are getting ready to find some type of value trade here.

All things being equal, if we do rally from here, the $3 level should of course cause a little bit of a headache for traders as we will look at the large round psychologically significant figure and more likely options traders getting involved. Above there, the $3.15 level is a major barrier as well. As things stand right now, I do think that buyers will return to this area sooner or later. However, keep your position size reasonable, as the markets are looking to cause a lot of volatile moves, and natural gas is well known to be a wild ride at times.

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