Natural Gas Price Analysis – Natural Gas Continues to Stay in Range

Natural Gas Technical Analysis

The natural gas market has rallied just a touch during the trading session here on Thursday, hanging around the 200-day EMA, an indicator that I think a lot of people will be watching. But really, at this point, I think what you’ve got here more than anything else is a bit of consolidation. That makes a lot of sense. This time of year is typically pretty poor for natural gas, as there’s just not enough demand.

In fact, the United States has a fairly mild summer going on, and of course, there won’t be any real need for heating, so with that being the case, we’re just going sideways still. With this, I remain more short-term focused at the moment.

Navigating Summer Demand and Trading Ranges

Right now, we are basically trading between $3.25 on the bottom and $3.45 on the top. You could widen that out to a bigger consolidation area between $3.00 on the bottom and $3.50 on the top. But right now, until we break out of that 50-cent range, I think you’re just looking at short-term back-and-forth choppy behavior. That’s typical this time of year.

If we were to drop down below the $3.00 level, then it’s likely that we could go looking to the $2.50 level, where I think you’d have buyers. I would love to see some type of massive spike higher based on a heatwave because those typically only last a few days. The first signs of exhaustion, more than willing to sell it. That’s the big move. But if you’re a short-term day trader, natural gas might be a decent range to play.

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