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

Natural Gas Technical Analysis

The natural gas market is fairly quiet during the early part of the Thursday session after selling off on Wednesday. Quite frankly, we are in a very weak time of year and I think that will end up being a situation where we have to focus on the fact that this time of year isn’t exactly hot, it isn’t exactly cold, so there’s not a lot of heating demand, and AC demand in the United States is probably somewhat quiet at the moment.

Given enough time, we could see this market take off to the upside on some type of heat wave, but generally speaking, this is a market that I think is looking at the $3 level as a bit of a fulcrum for price and the selling pressure that occurred during the previous session on Wednesday I think is just a sign that sooner or later we are going to drop.

Market Outlook and Key Levels

If we drop from here, then the $2.60 level could be your next target. If we rally from here, then we could see an attempt to get to the 200-day EMA, which is at the $3.28 level, but ultimately, this is a market that the higher it goes, the more likely I’m going to start shorting.

We did see the first shot across the bow, if you will, during the Wednesday session, and therefore, I’m looking for an excuse to get short. Again, I’m not looking for a huge move, I’m looking for a move that is probably more range-bound, and we’re at the top of that range. Nothing major, just a couple of days of negativity that I’m looking to take advantage of.

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