Natural Gas Price Analysis – Natural Gas Continues to See Overhead Pressure

Natural Gas Technical Analysis

Natural gas has dropped after initially trying to gap to the upside on Monday, as it looks like this is going to continue to be one of those situations where anytime it rallies, you have to think about shorting it.

After all, natural gas is not in its high-demand season, and that’s only going to get worse as far as price is concerned. There is talk of potential increased exports to the European Union, but ultimately, this is a market that I think stays soft.

The $3.50 level, at least for me at the moment, ends up being the ceiling, and if we were to break above there, I’d be a bit surprised. It would probably have to be due to some type of external shock, perhaps war-related. Ultimately, the markets will continue to see a lot of volatility and noise, so you do have to be careful.

Key Support Levels Technical Analysis

I think that if it gets a little overdone to the upside, you have to at least think about shorting. The $3.00 level of the course is an area that I think a lot of people would be looking for support, but even if that breaks, the next area is the $2.80 level, which I think a lot of people would be looking at as potential support as well.

I have no interest in buying natural gas, at least not until something drastically changes, because this time of year is typically very poor for it. Unless there is a specific reason coming out of the Middle East, natural gas will continue to see a lack of interest at the moment.

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