Natural Gas Markets Spike Again, but Still See Concerns

Natural gas markets gapped higher to show signs of strength again during the trading session on Monday, as we continue to see a lot of volatility in the markets. That being said, we also have seen a little bit of a pushback at the end of the day, as it suggests that we are going to continue to see plenty of selling pressure above. Furthermore, we also have the $5.00 level offer a bit of psychological resistance in the past, so I think is probably only a matter of time before we see selling again.

NATGAS Video 22.02.22

If we do break down, I believe that the 50 day EMA which is currently sitting at the $4.27 level, could offer a significant amount of support. After that, we also have the 200 day EMA sitting at the $4.12 level, which obviously would attract a certain amount of attention as well. It anything below there probably opens up the possibility of a $4.00 level print.

Keep in mind that natural gas tends to be very moody based upon the recent weather conditions in the northeastern part of the United States, but also upon the possibility of geopolitical issues coming into the picture. After all, we are seeing the Russians involved in an entanglement with the Ukrainians, so it all could have a bit of a ripple effect into the natural gas markets. That being said, we are getting close to warmer temperatures in the United States, so I think it is only a matter of time before we sell off. With that in the back of my mind, I am looking to short signs of exhaustion.

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