Natural Gas Price Analysis – Natural Gas Continues to Flounder

Natural Gas Technical Analysis

The natural gas market looks absolutely lost at the moment and that does make a certain amount of sense considering that the temperatures in the United States have been strengthening. I think at this point, you also look at this through the prism of whether or not demand will pick up. There is a real world in which we get a spike between now and the end of winter, which probably gets sold into.

There are a couple of things to consider here. Are you trading spot or futures? And if you are trading a CFD, is it following spot or futures? Spot markets are more likely to spike than futures markets as we are getting ready to roll over into April. But if we get any jump at all in this market, you have to be thinking about shorting at the first signs of exhaustion.

Strategic Outlook

I don’t typically short the market this time of year, but what I don’t want to do is start buying and wait for the weather to change. Quite frankly you are in a wait and see mode when it comes to natural gas for some type of jump that you can squash. It is a market that will be running out of steam here fairly soon, and really already has. This shows you the way things could be for several months, at least until hot weather hits the United States.

The global markets, of course, will be a little different, but as things stand right now, the most widely quoted natural gas market looks absolutely dead in the water. Basically, the way I am going to be playing this is to look for a big daily candlestick and then start to pay more attention. I wouldn’t short down here, there is a lot of support, but if you’re a short-term day trader maybe you’re fading short-term rallies. That’s probably about as good as it gets right now.

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