Natural Gas Price Analysis – Natural Gas Grinds Sideways Near 50-Day EMA

Natural Gas Technical Analysis

The natural gas markets are just grinding sideways in general with no real momentum, and that has been the case here for several days in a row. This makes sense considering this time of year is typically very quiet in this market. Demand for natural gas just isn’t that high.

Macro Conditions and Geopolitical Impacts

Although the conflict in the Middle East has flared back up, it appears at least at this point in time, the market is not concerned about the European natural gas supply this winter. That could cause some issues, but I don’t necessarily think that’s what people are worried about at this moment. We’re trading the August contract, which, of course, is one of the hottest times of the year, so there is the possibility that natural gas spikes due to a heatwave. But as things stand right now, we do not have that, and we’re just simply killing time.

As we go into the late fall, early winter contracts, as a general rule, natural gas gets a little bit of a bid, and it starts to rise. Short-term pullbacks at this point in time continue to be supported, but rallies get squashed. It’s just a market that doesn’t have anywhere to be right now. The $3 level above is a large, round, psychologically significant figure that is now backed up by the 50-day EMA. So that causes some headaches as well.

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