Natural Gas Price Analysis – Natural Gas Jumps on US Winter Storm

Natural Gas Technical Analysis

The natural gas markets have gapped higher to kick off the trading week as a significant storm has hit New York and Philadelphia, driving up demand for natural gas. If you’ve been watching me here at FX Empire you know I told you that we probably had one more of these ahead, so what we’re hoping for is a little bit of a bounce that we can sell into.

You can see that we’ve gapped and just drifted a little bit lower to try to fill that gap. We need a little bit of a push higher for more real estate, if you will, in order to short this market.

Contract Rollover and Resistance Levels

We are getting ready to roll over into the April contract here on Wednesday and that will cause chaos as well, so be aware of that, but we need more of a jump. The $3.50 level would be a good place to expect resistance right along with the moving averages of the 200 and 50 day EMA variety followed by $4.

If we can get another jolt higher, I’ll be more than happy to short this market. I do think that natural gas is abundant. I also recognize that we’re running out of cold weather, so it’s only a matter of time before we plunge again, perhaps looking towards the $2.60 level.

I do prefer to fade rallies at this point, but I also recognize that this is not an investable market. This is a short-term fade the rally, collecting your profit type of move is what you’re looking for here.

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