Natural Gas Price Analysis – Natural Gas Rises Slightly in Early Tuesday Trading

Natural Gas Technical Analysis

The natural gas market continues to be very choppy, to say the least, but we are seeing a little bit more in the way of upward momentum as of late, which makes a certain amount of sense considering that temperatures in the United States have been rising over the last couple of days. This is not a long-term situation, but it will bring in a bit of demand in the short term. This time of year, is what is known as shoulder season, and it typically is fairly weak.

Natural Gas Market Outlook

I think the market will probably give us a nice shorting opportunity given enough time, and I will be looking for signs of exhaustion to start selling yet again, as I typically do this time of year. I have no interest in buying natural gas at the moment, as it can roll over rather quickly.

Below the $3 level opens up a potential move to the 50-day EMA, possibly even the $2.60 level. To the upside, the 200-day EMA offers a significant barrier in the form of $3.29.

This market right now, I think, continues to be important, and really, with the oversupply that we see in the United States, it is very difficult for natural gas to have a longer-term move to the upside. If it rallies from here, that is great, I will just sell it at a slightly higher level. I am looking for signs of exhaustion; haven’t really had any follow-through on that yet, but the next couple of days probably will give us that opportunity. Just being patient will more likely than not end up being the biggest hurdle to being profitable in this market at the moment.

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