Natural Gas Price Outlook – Natural Gas Continues to Attempt a Bounce

Natural Gas Technical Analysis

The natural gas market is slightly positive during the trading session here on Tuesday in pre-market trading or overnight trading. But at this point, I also recognize that we have a market that has recently bounced from the crucial $3 level and now is getting a bit of a short-term technical bounce. The question, of course, is whether or not we can continue to see a bit of a push to the upside. The uptrending line here, I believe, is a barrier that will be difficult to overcome.

So, I’m essentially waiting for an opportunity to start shorting again on signs of exhaustion. This time of year is typically very poor for natural gas demand. As a result, I think you’ve got a situation where traders are going to be looking at this through the prism of a market that is just one you’re going to have to be patient with it, and you’re going to have to recognize that this is seasonal trade.

So let it bounce, for me, that’s exactly what I’m going to do. And then I will just pay for the first signs of exhaustion, even if we break above the uptrend line, then you’re looking at the 200 day EMA as a potential resistance barrier as well, which is right here at the $3.37 region. If we were to break down below $3, it’s really not until we break down below $2.80 that the bottom falls out. And while I do expect that to happen sooner or later, you do have to take into account that the Europeans are buying US gas.

So, it is a little bit different animal than it typically is every year. So, I’m watching this with great interest. I’m just looking for it to get a little extended to the upside, maybe produce a nice wick that I can start shorting.

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