Natural Gas Technical Analysis
The natural gas market rallied rather significantly during Wednesday’s trading session as we continue to see a lot of noisy behavior. That being said, the natural gas market is well above the 200-day EMA, and it looks as if it is heading toward the $3.30 level. This area could be difficult to break, but it does make for a nice place to look for.
$3.30 Was Key Resistance, as We Roll Over to December
The $3.30 level is an area that previously had been significant resistance, and now it does make a juicy target for the bullish players out there. Ultimately, this is a market that will continue to be noisy, but we are starting to shift seasons in the sense that nights are starting to get kind of cool here in the United States, and therefore demand should start to pick up. This is a trade that I take every year, with the demand naturally picking up.
We roll over at the end of the month into the December contract, which is typically a positive time of year as well. So, ultimately, at this point in time, I’m looking to buy short-term pullbacks offering value, and therefore have no interest in shorting.
I’m not overly bullish yet, but we are getting there. The $3.00 level should continue to be important, as the 50-day EMA sits just below it, offering a little bit of support. This is an area I am very interested in if we were to test it again.
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