Natural Gas Price Outlook – Natural Gas Climbs Slightly Early on Wednesday

Natural Gas Technical Analysis

The natural gas markets rallied just a bit during the early hours here on Wednesday, but we continue to see a lot of noise right around the $3 level. The 50 day EMA sits just above and that could offer a bit of technical resistance as well. Keep in mind that we are starting to see a little bit of upward pressure in volume, but really at this point in time, it is a little early in the year to expect the winter rally. We are having a little bit cooler temperatures in the United States.

So maybe there’s a little bit of a bounce here, but quite frankly, any signs of exhaustion I think will get jumped on by short sellers. I don’t have any interest in buying at the moment. The $3.26 level is where we find the 200 day EMA. And if we can get above there, then maybe things turn around for a longer term move. But right now, I still look at this market with a lot of suspicion. I suspect we’re probably going to bounce around the $3 level, maybe make one more plunge lower. And then at that point in time, depending on when it happens, we might be looking at the turnaround heading into the colder months.

Keep in mind, this is a very seasonal type of market, but we’re just not there yet. We’re in the September contract. So, it’s not exactly a poor month for natural gas, but it’s not exactly a strong one either. So, watch out for a lot of choppiness. We are in the middle of some type of bottoming pattern but just a V pattern going straight up in the air. I just don’t see that at this point.

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