Natural Gas Markets Reaching Towards the Major Resistance

Natural gas markets have rallied a bit during the trading session on Thursday to look as if it is ready to go test the $5.00 level again. That being said, it is still an area that offers quite a bit of resistance, and it is more likely than not going to continue to be an area where sellers come back into the picture. At this point, I am looking for some type of exhaustion that I can start shorting into, which I do not have quite yet. However, I certainly will not be a buyer as I see so much in the way of resistance just above.

NATGAS Video 18.03.22

The 50 Day EMA underneath should offer support, as it is being respected over the last couple of weeks. Ultimately, the market looks as if it is trying to squeeze a little bit higher, but in the end, we will have warmer temperatures and therefore less demand. Yes, there is a certain amount of inflation being priced into the commodity, but quite frankly natural gas is not the place you are going to see it.

The one thing that does work out in the favor of natural gas is the fact that crude oil has been so explosive as of late, and therefore some people may be switching over to natural gas for power. Does not really matter in the end though, because quite frankly the demand will shrink as temperatures rise, and of course, central banks are starting to raise interest rates to fight the demand in the economy on the whole, which will be felt in this commodity as well.

For a look at all of today’s economic events, check out our economic calendar.