Natural Gas Price Forecast – Natural Gas Continues to Flounder

Natural Gas Technical Analysis

The natural gas market has gone back and forth during the course of the trading session here on Thursday, as we are simply bouncing around just below the $3 level and testing the $2.90 level. This time of year is typically somewhat sought for natural gas in general, as the main driver for the bulk of the year is actually heating. Although when the United States gets hot enough, we can see a lot of demand for air conditioning via electricity, natural gas is burned. Nonetheless, the storage numbers have been very full as of late, and we have not had enough to really get things going. This is a situation that looks likely to be a focus of traders in the near term, as it is so pronounced at the moment.

Breakdown?

Ultimately, though, if we were to break down from here, the market could go look into the $2.50 level, an area that obviously is a large round psychologically significant trigger. If we can break above the $3 level, then it’s possible that the market will go looking at the recent highs that we had seen. That is a psychological barrier that will cause a lot of people to perhaps think along the lines of positivity. For myself, I look for signs of exhaustion and tend to fade the market this time of year because sustainable upward pressure is a difficult thing to have when you’re trading the August contract like we are right now. However, I will keep an eye out for any opportunities on bounces at the moment.

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