Natural Gas Price Analysis – Natural Gas Looking Like a Short Soon

Natural Gas Technical Analysis

The natural gas market continues to see a lot of back and forth during the trading session on Thursday as we continue to see a lot of noisy behavior. The 200-day EMA at the $3.27 level is a barrier that I think will be very difficult to break above there. In fact, I think it will only be possible if there is some massive event.

Market Demand and Technical Outlook

If we break down below here, perhaps below the $3 level, it opens up the possibility of natural gas dropping down to the $2.60 level, which would not surprise me at all as this time of year is typically very weak. The demand just doesn’t exist as there’s no heating demand, and there are no massive heat waves to worry about at the moment.

And I think when you look at this, you’re just simply looking for signs of exhaustion that you can start shorting because, quite frankly, I just don’t see an argument for natural gas to rise despite the fact of what’s going on in the Middle East. After all, this is an American contract, so you have to pay attention to American weather more than anything else.

I believe this is a market that continues to show choppiness, downward pressure, but over the longer term, I think it will probably go much lower, at least in the next few months. Later this year, it’s a completely different argument. Until then, I am bearish in this market on rallies that show the first signs of exhaustion.

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