Natural Gas Technical Analysis
The market has bounced a bit from the crucial $3 level on the most recent rollover. We have seen a little bit of pushback, but ultimately, this is a market that is trying to find whether or not it can rally, with November, of course, being a colder month.
Demand should, at least in theory, pick up, and we can start to chip away at some of that excess storage that we’ve had for a while. Furthermore, we also have to keep in mind that the Europeans may be importing a lot of liquefied natural gas from the United States.
Seasonal Shift in Natural Gas
Ultimately, this is the time of year I start thinking about buying more and selling less. It just comes down to how things play out in the Middle East. If those Qatar natural gas lines get hit again by the Iranians, that could cause chaos here this time of year and as we get closer towards the end of the year.
I don’t know that I would say I’m bullish, but I’m starting to lean from neutral to bullish right now. $3.30 would be a target on the futures contract eventually. We’ll just see how that plays out.
The 50-day EMA is at $2.93, and that could offer support. We had also seen pretty significant support at $2.80. That’s the consolidation that we broke out of and are testing the top of right now. Technically speaking, it’s a pretty decent area that buyers might be interested in. The 200-day EMA sits right in the middle of all this.
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