Natural Gas Price Outlook – Natural Gas Continues to See Range

Natural Gas Technical Analysis

The natural gas market has found itself to be a little bit negative after initially gapping higher. All things being equal, this is a market that I think continues to see plenty of support underneath current levels near the $3.50 level. The $3.50 level has been important multiple times, and of course, we have the 50-day EMA sitting right there as well. So that might be your target. Ultimately, I don’t have any interest in trying to buy natural gas this time of year, although it has been very noisy over the last several weeks and it’ll be interesting to see whether or not we can continue to find people willing to step in and buy this market because, quite frankly, this time of year it typically doesn’t happen.

Ultimately, if we can break above the $3.80 level, then we could go looking to the $4 level. That being said I do favor selling signs of exhaustion, we did start to get that late during the day in the previous session on Monday, and now it looks like it is playing out again. The $3 level for me is the target eventually, but I recognize that near the $3.12 level, there does seem to be a significant amount of support that needs to be taken into account. Let’s not just let the thing bounce against us if we get down there. I favor the downside. I also recognize that we are somewhat range-bound, so now that we’re at the top of that range, I am in fact shorting this market.

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