Natural Gas Price Outlook – Natural Gas Rallies Early on Friday

Natural Gas Technical Analysis

Natural gas markets have rallied a bit in the early hours on Friday as we continue to try to break to the upside. Quite frankly, I think what we’ve got here is a situation where we just sold off a little too much and now I think any rally at this point in time you’d have to look at through the prism of a potential selling opportunity in the first signs of exhaustion. I do think that the $4 level above is going to continue to be a major barrier, and the $4 level for myself, I think, is your ceiling.

I don’t even think we get that far, but if we do, I will definitely be very interested in starting getting shorting. Signs of exhaustion, I think, open up the possibility of a turnaround and, I think, eventually breaking down below the 200-day EMA, which is where we have bounced from over the last couple of days to go looking to the $3 level.

Temperatures are starting to become a little bit milder in the United States and that will help. And of course, the ceasefire between the Iranians and the Israelis help as well. And just typically speaking, this is a time of year where natural gas isn’t necessarily that strong. So with all of that lining up, I’m looking forward to selling the bounce yet again. Eventually we get a pretty wicked breakdown, I believe, but timing that’s always a bit of trouble.

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