Natural Gas Price Analysis – Natural Gas Drifts Lower During Early Friday

Natural Gas Technical Analysis

The natural gas market continues to hover just above the $3 level on Friday, as that area will attract a lot of attention as it is a large, round, psychologically significant figure and an area that’s been important multiple times.

We are looking forward to spring at this point, but it is possible that we get 1 more cold snap between now and the end of winter. That probably would cause a bit of a bounce, but I think that bounce ends up being a nice shorting opportunity given enough time.

Technical Resistance and Seasonal Sentiment

The $3.50 level is your next major barrier, followed by the 200-day EMA, and I think that would be difficult to get above unless we get another winter storm. For what it’s worth, the temperatures in the United States over the weekend are expected to climb quite a bit, so perhaps we’re getting close to the end of winter, but again, it’s only the middle of February.

One would think that there might be another potential move to the upside, which would be a nice short-term opportunity to go along, only to see signs of exhaustion when traders start to see the market get a little bit heavy.

That’s been the play all winter. It is a cyclical trade. It’s a little early to start shorting, and it’s definitely far too low to be easily shorted. In this juncture, I’m waiting for momentum to jump on board to the upside and then fade signs of exhaustion as we head into the spring and summer months. In the meantime, it’s a waiting game.

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