Natural Gas Price Analysis – Natural Gas Consolidates as US Heatwave Fades

Natural Gas Technical Analysis

The natural gas market looks as if it is very quiet in the pre-market and early hours of Wednesday, which makes a certain amount of sense considering that it is a shortened week. I think a lot of people are just paying close attention to this heatwave in the United States to see if it lasts for any significant amount of time. It is not expected to. In fact, by the beginning of next week, it will be gone. With that being said, we’re not seeing the pop that I like to start shorting at signs of exhaustion during this time of year.

Trading the Summer Range Boundaries

The 200-day EMA is sitting right here, which is obviously an indicator that a lot of people will watch. But if we break above there, then the $3.50 level above gets targeted. The $3 level underneath gets targeted for support, and a potential area to get long. The market should continue to drift back and forth at this point on the calendar.

I think, all things being equal, this is a market that if you get a little bit too far in one direction or the other and get near one of those levels, if you see a pushback, then that might be an entry signal as well. This is a short-term range-bound trading situation, and I think that will remain the way going forward. I have no interest in getting aggressive here. And really, at this point in time, I would love to short signs of exhaustion. But if I don’t get that opportunity, occasionally I will jump into the market for a short-term type of back-and-forth range-bound system setup.

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