Natural Gas Price Outlook – Natural Gas Continues to Drift Lower

Natural Gas Technical Analysis

The natural gas markets continue to struggle overall as we see a lot of noisy behavior out there when it comes to commodities in general. What’s interesting is that we have seen the natural gas markets somewhat ignore the overall seasonality from time to time of lack of demand. So, the question now is, are we going to head back into it? I think we’re getting close. Whether or not that’s actually true remains to be seen, of course.

But right now, I would venture to say that there is much more pressure to the downside than up. And that does make sense. After all, people won’t be looking to heat up their homes. They’ll be enjoying mild temperatures. And we are not to the point where hot temperatures are an issue. So, it all ties together quite nicely.

All things being equal, this is a market that is pulling back from the 50% Fibonacci retracement level from the recent sell-off at the top. We bounced 50% and now we’re dropping again. I suspect a lot of technical traders will be interested in that. Furthermore, it’s also a market that will be targeting the $3.50 level rather quickly. And then after that, we will be targeting the 200 day EMA. All things being equal, I am bearish in this market and really have no interest in buying it, even if it does rally, unless, of course, there’s some type of major external factor or that type of thing. So with that being said, I remain bearish.

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