Natural Gas Price Analysis – Natural Gas Looking for Ceiling

Natural Gas Technical Analysis

The natural gas market looks a little bit positive in early trading on Friday but it’s also bumping up against an area that does look a little heavy in general. Ultimately, I think this is a market that will try to get to the 50-day EMA but will probably fail. This is an area I am paying very close attention to at the moment.

The $3.00 level for me is still a major barrier for this market as the demand for natural gas will certainly be very weak in the United States. Despite the fact that the numbers, the storage numbers that came out, were a little bit more hawkish than expected or bullish, the reality is that the demand just won’t be there.

As we go into the summer there may be the occasional heatwave, that’s probably the best scenario for natural gas right now is that we get one, but we are a couple of months away from that. Because of this, I remain committed to looking for selling opportunities and ignore buying signals for the time being.

Demand and Seasonal Price Barriers

I continue to fade this market anytime it starts to think about rising. I have no interest in buying natural gas until we start talking about late fall contracts.

Right now, we’re in the June contract, a very mild time of year in America and therefore a very low demand season. This will continue to be the way forward, as this asset has such a significant seasonal component attached to it.

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