Natural Gas Technical Analysis
The natural gas market has fallen a bit during the trading session on Monday, only to turn around and show signs of strength again. At this point, it looks like there’s not much stopping this market from rising, and of course, temperatures in the United States have been somewhat colder than anticipated. With that being the case, the market continues to look at the $5 level as a potential barrier and perhaps destination.
If the market were to pull back at this point, the $4.60 level and the $4.20 level will end up being a bit of support. I do think natural gas continues to see a lot of buying pressure this time of year due to the colder temperatures in the United States and Russia, as well as Europe and Scandinavia. And as long as that’s the case, I think you’ve got a scenario where people are going to be pushing this market higher.
Seasonal Demand and Support Zones
I have no interest in shorting and, in fact, just won’t this time of year. But eventually, once we start going into the spring contract, then you start shorting, and you just continue to short for most of the year.
All things being equal, this is a market that looks bullish now, and I am looking at pullbacks as potential buying opportunities, but right now, we just don’t want to have enough value entering the market. Unless you’re willing to jump in and start chasing wildly, you’re probably just waiting here looking for an opportunity.
For a look at all of today’s economic events, check out our economic calendar.
