Natural Gas Price Analysis – Natural Gas Continues to Watch $3

Natural Gas Technical Analysis

The natural gas market continues to be very lackluster as we are hanging around sub $3. The $3 level of the course is a large, round, psychologically significant figure that a lot of people will see and, of course, will attract a lot of headlines.

It looks like we’re trying to form a little bit of a double bottom here, but I wouldn’t get too excited because, quite frankly, the demand for natural gas is going to continue to be very weak, especially in the Northern Hemisphere, and the US in particular.

With this, I do believe that it is a market that you are looking at for potential selling opportunities and those selling opportunities should present themselves on signs of exhaustion after a short-term rally.

Market Outlook and Export Dynamics

Natural gas is likely to continue to be a scenario of weakness at least for the next few months as we are trying to figure out whether or not exports coming out of the United States being sent to Europe will affect the markets. This could be a big story at one point or another.

I think that’s a story for this autumn, maybe the winter. Right now, any rally that jumps I’d be looking to step on, especially near the 50-day EMA, which in and of itself is a major indicator that a lot of people will watch.

Ultimately, I have no interest whatsoever in trying to buy this market. I just look for shorting opportunities in this environment. I believe that we are a long way from another bullish run in this asset.

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