Natural Gas Markets Continue to Display Choppiness

Natural gas markets have bounced a bit during the trading session on Friday to show signs of recovery, but we have given back gains from the very top of the range so that does also suggests that there are still sellers out there willing to push this market lower. Because of this, I think it is only a matter of time before natural gas does return towards the lower reaches, perhaps down to the 50 Day EMA. That is an area that has acted as dynamic support recently, so it will be interesting to see how it reacts to that level if and when it finally gets there.

NATGAS Video 14.03.22

On the upside, the $5.00 level is an obvious resistance barrier, and I think an area where a lot of sellers would return. As temperatures warm in the United States, that should help this contract out a bit, and that of course is the seasonality of this market most of the time. The 200 Day EMA sits at the $4.19 level, and I think will be a potential longer-term target. If we break down below that, then we would be looking at the $3.90 level.

I still believe in fading short-term rallies, as natural gas will continue to be seen lower demand than the United States. However, the situation in Europe does have a little bit of an effect on this market, although very little of it actually ends up going across the Atlantic Ocean. Because of this, I continue to look at these rallies as potential selling opportunities.

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