Natural Gas Price Analysis – Natural Gas Continues to See Pressure

Natural Gas Technical Analysis

The natural gas market has shown itself to be a little bit hesitant, but when you look at the market overall, it is pretty easy to see that the sellers are firmly in control of what is going on. This time of year, is typically very weak for natural gas, so I do not find this surprising at all. The $3 level above I think is your ceiling at the moment and any rally that we get that puts us anywhere close to that level and then shows signs of exhaustion for me is inviting selling.

Natural gas storage is full in the United States, and of course, this time of year is a time when we are seasonally weak due to a lack of heating demand, and it is not quite hot enough to start running air conditioning. This is a typical move for the months of March, April, and May. I do not really expect to see much in the way to push this higher.

Later this year, I do believe that the European exports will have an influence, but Europe is dealing with mild temperatures as well. It all ties in together for being the time of year when they fill the tanks up and not necessarily send a lot of natural gas out there.

Technical Indicators and Support Levels

The 50-day EMA sits just above the $3 level so that adds even more credence to that as being a ceiling if we do in fact try to jump. $2.50 underneath for me is a psychological support level.

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