Natural Gas Price Analysis – Natural Gas Consolidates as $2.80 to $3 Range Controls Price

Natural Gas Technical Analysis

The natural gas market has shown itself to be pretty sideways and stable over the last week or so, and in the early part of the trading session here on Friday, we’ve seen a little bit of a dip and then a bounce.

The $3 level above is a large, round, psychologically significant figure that a lot of people will be watching very closely. Furthermore, we also have the 50-day EMA sitting just above there, and that will, more likely than not, cause some questions to be asked as well.

Key Market Levels

The $2.80 level underneath is a level of support that we’ve seen play out over the last 2 weeks, and as things stand right now, it just doesn’t look like we have a lot of momentum to break out in one direction or the other.

Historically speaking, this is a fairly quiet time of year, and that is still playing out despite the fact that natural gas futures in Europe are just ripping to the upside. I saw here recently that over the last month or so, they’re up about 50%. This is a US contract, never forget that, so it really doesn’t matter what happens in Europe until they start talking about importing natural gas from the United States. At that point, things become a little bit more interesting.

Ultimately, this is a market that is basically sideways. Short-term traders will continue to perhaps look for back-and-forth trading opportunities. Not a lot of volatility here. Again, we’re trading the August contract, so there really shouldn’t be.

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