Natural Gas Price Outlook – Natural Gas Continues to Look to Spring

Natural Gas Technical Analysis

The natural gas market has fallen pretty significantly in the early hours on Friday, as we continue to see a lot of questions asked about whether or not the demand will continue to climb as temperatures climb in the United States. While there is less supply than typical this time of year, this is a short-term phenomenon, and the seasonality, of course, still favors the natural gas market, falling at this point in time as demand drops for several months.

And in fact, it really won’t be until we get a heat wave in the United States that you should see a massive spike, but you never know, there are plenty of other external pressures that could just jump in. Generally speaking, though, this is the time of year when we start to sell natural gas as you get the opportunity to collect all of your profit from the run-up over the winter. I don’t have any interest in buying natural gas, although I freely admit that we could continue to rally and quite frankly, we’ve rallied further than I thought we would have.

So, you have to be cautious. You have to wait for a momentum move to the downside. Full disclosure, typically, I will have a couple of losses when I try to short natural gas at the beginning of the winter season, only to turn around and make a huge gain to the downside. So, you have to understand this is the game you’re playing. Natural gas is a highly manipulated and thin market at times. So, you’re not really in a retail market, you have to treat it as such.

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