Natural Gas Price Analysis – Natural Gas Continues to See Magnetic Price

Natural Gas Technical Analysis

The natural gas market has gone back and forth during the course of the early part of Friday trading as we continue to bump along the $3 level. The $3 level is a large, round, psychologically significant figure, and a lot of people will be watching it for that reason alone. Right now, though, we’re starting to determine whether or not there’s going to be another bust higher as we are in the cold but still.

On next Wednesday, we’re rolling over to the April contract and then you start to talk about a serious lack of demand.

Vicious Winter Storm Needed to Help the Market Jump

Really, what we need is some type of really vicious winter storm, and that could drive down some of the supply to help this market jump. If you’re in the CFD market, there might be a difference in pricing as spot will be focusing more on the colder temperatures that are still somewhat found. It is also worth noting that the temperatures have warmed up as of late, and even though they’re going to drop next week in the United States, it’s not going to be enough to cause a huge difference.

If we do rally from here, the market is likely to see trouble at $3.50, the 200-day EMA, the 50-day EMA, etc. Any bounce from here that shows signs of exhaustion ends up being a selling opportunity and maybe we’ve rolled over into the natural gas is to be sold part of the year.

Selling it here is almost impossible as there’s just so much support in this area. It’s not that we can’t fall; it’s just that I don’t like the risk to reward ratio. If we can jump 50 cents, maybe a dollar, then you have something to work with.

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