Natural Gas Price Analysis – Natural Gas Continues to March Higher

Natural Gas Futures Technical Analysis

The natural gas market rallied a bit during the trading session on Friday as we continue to see this market reach towards the 200-day EMA. If we can break above the 200-day EMA, then the market could go looking to the $4 level. Short-term pullbacks, I think, offer buying opportunities with the $3.50 level and again at the $3.25 level. This market will continue to be one of the more volatile ones that you have to be careful with, as the swings can be wild at times. Position sizing is crucial in this asset.

Market Outlook and Seasonal Trends

Keep in mind that we have warmer temperatures forecast ahead, but I think we have a situation where there is probably one more severe cold snap in the United States coming. As a result, I think you have to look at this through the prism of a market that probably you can buy one more dip and an explosive move to the upside before closing out the season.

This is a very cyclical market that is driven by cold temperatures in the United States more than anything else, and we definitely have them, and they have been stubborn, but in a couple of weeks, we should see a little bit of a reprieve. However, again, we probably have another snap ahead of us, so keep that in mind. I don’t have any interest in shorting this market this time of year and most certainly not down at these low levels. I think the $3 level is going to end up being a floor.

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