Natural Gas Price Analysis – Natural Gas Flat on Thursday

Natural Gas Technical Analysis

The natural gas market has gone back and forth during the trading session here on Thursday, and quite frankly, I think this is a situation where traders are probably just sitting on the sidelines. They are more likely than not just kind of waiting to see what the natural gas storage numbers are. But really, even if we, really at this point in time, I still be looking to short this market near the 200-day EMA.

Key Support Levels and Market Outlook

The $3 level underneath is support. If we were to break down below there, then the market is likely to go looking to the $2.75 level. If we were to break above the $3.50 level, that could be a very bullish sign, perhaps due to something along the lines of a heat wave. But we don’t have a heat wave at the moment, and with this, I believe that signs of exhaustion still get sold into because those will be short-term movers.

There are questions about exports coming out of the United States, but it seems like Qatar is back up to about 80% of production, and that will help Europe. So, I think natural gas goes back to a normal market, and right now, this is a time of year where you might have a 7-day hot spell, and then demand drops.

Right now, as we head into the number, the last numbers last week were actually higher than anticipated, meaning that we have more supply. I’m still very bearish on natural gas. Keep in mind, Friday is Juneteenth, and markets will have limited hours.

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