Natural Gas Price Outlook – Natural Gas Continues to Stretch

Natural Gas Technical Analysis

The natural gas markets continue to stretch and swim upstream as we continue to focus on the 12% drop in storage more than anything else due to the cold weather in the United States earlier this year. That being said, demand is about to fall through the floor. So I don’t chase this in this environment. Yes, it could go higher, the first person to admit that but I also recognize that typically this time of year, we start selling off because demand for natural gas will plummet for at least three months.

And in fact, most of the year, natural gas demand isn’t high enough to cause high prices, mainly because we are swimming in it here in the United States. Temperatures are starting to mild a bit, and with that, I think it drives down the idea of natural gas screaming to the upside. But in the short term, we are watching producers in storage numbers that suggest that we have a little bit of building up to do. But at the very end of the season, I don’t need to pick up the last three or four cents.

I’m waiting to see when we start to see momentum to the downside. We will, and once we do, I will start shorting until then. I’m kind of stuck in stasis here. There’s no reason to mess around in natural gas. There are plenty of other markets that you can be involved in that are very clear. But this is one that I check every day to see if the tide is starting to shift. And it does look like we’re getting there, but we’re just not there quite yet.

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