Natural Gas Price Outlook – Natural Gas Continues to Grind Higher

Natural Gas Technical Analysis

The natural gas market has rallied slightly in the early hours here on Wednesday again to test the $3.60 level. The $3.60 level is an area that has been important a couple of times. If we pull back from here, then we could see some type of buying. And I think based on value, that makes quite a bit of sense. After all, this is the time of year when you start to see temperatures drop in the United States and Northern Europe. And we do have weather reports that the temperatures in the United States are going to drop. It makes sense.

Demand will pick up. Price rises. Over the longer term, I believe that we follow this market towards the $4 level, but we might get an opportunity to pick up cheap natural gas here. And that’s really what you’re looking for. You’re looking for some type of value at a market that did explode to the upside rather quickly. Now we’ll see whether or not the 200-day EMA or the 50-day EMA holds going forward.

With that, I look at this as a potential noisy market, but a break above the $3.60 level eventually opens up the possibility of a move to the $4 level, which I do think is maybe not your ultimate target, but for the time being, I think that’s what we’re trying to get to over the next couple of months. It’s only a couple of weeks before we roll over to the December contract. That, of course, means more demand.

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