Natural Gas Price Outlook – Natural Gas Continues to See Same Resistance Level

Natural Gas Technical Analysis

Natural gas is trading against a resistance barrier in the form of the rectangle that we’ve been in for a while. I do think we have a scenario where we are looking to perhaps fade this move, but we also have the non-farm payroll announcement coming out on Friday that will have a major influence as to what happens next.

Ultimately, I do think you have a scenario where traders are probably looking to see if the $3.85 level holds as resistance. If it does, and so far, it looks like it is doing exactly that, then I anticipate that you have a situation where people will fade this rally. The 50 day EMA sits near the $3.54 cents level. And of course, the $3.50 level is an area where I think a lot of people will be paying close attention.

Ultimately, I do believe that this is a situation where traders are just simply trying to see whether or not we head back down. It would make sense this time of year, but we also have a lot more European exports and we are refilling those tanks from the winter still it seems. So, it’s a bit of a messy market, but I still favor the downside. I also recognize that this is a market that you need to trade in very small quantities. You can get yourself into a lot of trouble here if you are not careful.

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