Natural Gas Price Analysis – Natural Gas Continues to Bounce Around

Natural Gas Technical Analysis

The natural gas market has been pretty quiet on Monday, which, of course, would be expected. It was Memorial Day in the United States, as well as a holiday in several other countries in the West. So, with that, it would have been very thin volume, and therefore, I don’t read too much into the price action on Monday.

Fading Short-Term Rallies

That being said, it is still the same story that I’ve been talking about. I’m just fading short-term rallies. After all, this is a market that sees very little demand this time of year and when it does, it’s very short-lived. After all, there isn’t a lot of heat, and certainly, we have no real need for heating at the moment as well.

We eventually will get some type of heatwave that drives up demand for natural gas, but we’re not there right now and I think ultimately, we could go down to the $2.70 level, maybe the $2.50 level before it’s all said and done. But that doesn’t mean we get there overnight or easily, as there will be a lot of “back-and-forth” when it comes to price action.

Somewhere around $3, maybe $3.10, it seems like there’s interest in shorting again. So, while it does look like we are trying to bounce ever so slightly for the session, I think this is going to lead to a selling opportunity closer to the $3 region. This is an area that I think will continue to be important for some time going forward.

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