Natural Gas Price Outlook – Natural Gas Continues to Churn

Natural Gas Technical Analysis

The natural gas markets have fallen a bit during the trading session on Wednesday in early action as storage continues to be very high for this time of year. That being said, there are colder temperatures on their way and that could have a major influence on what happens next, but I also recognize that traders will look at this through the prism of a market that, given enough time, probably finds its way to higher prices just due to the time of year and the fact that we’re only a couple of cold snaps away from draining some of that supply.

Key Resistance and Market Momentum

If we can break above the $3.50 level, I think that’s your first victory. Anything above the 200-day EMA really gets the market moving at that point, perhaps sending it to the $4.00 level. Short-term pullbacks continue to be potential buying opportunities and the idea of building up some type of basing pattern. This is how things can eventually turn around for the bulls.

With this being the case, the market I do think the market is in an accumulation phase, or at least not so bearish. I don’t want to short down here, at least not now, not this time of year. That being said, I think we probably have 1 or 2 spikes higher for the rest of the winter. That’s generally how this plays out, so I’ll be looking to see momentum to the upside and trying to take advantage of it.

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