Natural Gas Price Analysis – Natural Gas Continues to See Pressures on Tuesday

Natural Gas Technical Analysis

The natural gas market fell to the $3 level right away only to turn around and show signs of life. That being said, the market is likely to continue to see a lot of questions asked about demand as this time of year the temperatures start to pick up and demand for natural gas in the United States falls off of a cliff.

That being said, the market is likely to continue to see a lot of volatility as there are questions about the European Union and whether or not they’ll be importing a lot of US natural gas as there’s been damage to natural gas production in Qatar.

Demand Trends and Seasonal Volatility

So over time, I think we might find a little bit of a higher floor, but I still believe this time of year, you’re looking for signs of exhaustion that you can sell into. After all, any spike in price unless it’s something like an actual massive supply disruption, then I think you have to look at it with a bit of skepticism.

I believe that the $3.50 level is probably going to be your short-term ceiling. The 50-day EMA sits right there, right along with the 200-day EMA, so both of those end up being what I think are nice entry points to the downside. If we do fall from here and break down below the $3 level, it’s possible that we will go down to the $2.75 level. All things being equal, I’m looking for selling opportunities.

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