Natural Gas Price Analysis – Natural Gas Continues to See Grind

Natural Gas Technical Analysis

The natural gas market has rallied slightly during the trading session here in the early hours of Tuesday, but as you can see, this is a market that has been grinding back and forth between the 50-day EMA on the bottom and the 200-day EMA above. Ultimately, this is a market that I think continues to see questions asked of demand, but at the same time, despite the fact that we would obviously not have much in the way of heating demand in the United States, there is the possibility of a heat wave, as we are trading the July contract, obviously, and that comes into question as well.

Evaluating Seasonal Demand and Key Support Levels

Any short-term rally at this point in time based on a heat wave could end up being a nice shorting opportunity at the first signs of exhaustion. I don’t like the idea of jumping in and chasing a move to the upside in this market, as it’s just not a bullish time of year for anything more than a couple of days.

I do recognize that the $3.00 level underneath offers a certain amount of support. If we were to break down below there, then the market is more likely than not to drop to 2 dollars 75 cents below. Ultimately, this is the wrong time of year for the market to be bullish for anything more than a blip, so keep that in mind as you see these moves. A bit of patience will open opportunities for those that can use it.

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