Natural Gas Markets Have Tested Resistance Again

Natural gas markets have rallied a bit during the course of the trading session on Wednesday as we are testing the top of the shooting star from the previous session. That being said, a lot of this comes down to noise around the Ukrainian border, so therefore it does make a sense that this is going to be a bit of a fluid situation, but nonetheless I think this is a market that will continue to see plenty of sellers, despite the fact that the market continues to see a lot of geopolitical issues.

NATGAS Video 24.02.22

Given enough time we are likely to see a lot of volatility, but sooner or later we have warmer temperatures in the United States that will come into the picture and push this market lower. The 50 day EMA sits at the $4.27 level, followed by the $4.13 level at the 200 day EMA. All things been equal, this is a market that has no interest whatsoever in trying to break down quite yet, but as soon as those temperatures in the northeastern part of the United States start to spike higher, that will be the end of this rally.

I still do not like the idea of buying natural gas, because quite frankly it is a commodity that we have plenty of supply for, but right now some of the noise coming out of Europe is probably going to throw a bit of buying pressure into the market. That will be short-lived more likely than not, especially if the Nordstream 2 pipeline ends up being use, which quite frankly it almost has to give enough time.

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