Natural Gas Price Outlook – Natural Gas Continues to Hang in Suspension

Natural Gas Technical Analysis

The natural gas market has drifted a little bit lower in the early hours on Wednesday as we continue to see a lot of noisy behavior. That being said, the market is likely to continue to look at the consolidation area as an area that the market is currently stuck in. Right now, we have resistance near the $3.83 level and support near the $3.12 level. And as we are closer to the top of the overall range, then one would think that there’s a little bit of selling pressure and supply closer to the $4 handle.

I think this is a situation where traders continue to be a little bit confused as we have a lack of heating demand this time of year out of the United States and Europe, but we also have concerns about natural gas supply that no longer comes out of Russia. So, it makes this winter a little bit different than many of the other ones where we just simply fall off of a cliff. But I still prefer fading rallies.

If we can break down below the low of the Tuesday session, then I’ll be short of this market. If we break to the upside, I’ll be watching the $4 region very closely for signs of exhaustion that I can start shorting. I don’t have any interest in buying natural gas at the moment. Probably won’t think that way until we get into air conditioning season in the United States.

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