Natural Gas Price Outlook – Natural Gas Continues to See Buyers

Natural Gas Technical Analysis

The natural gas market initially did fall a bit during the trading session in the early hours on Thursday, only to turn around and show signs of life. All things being equal, this is a market that I think will continue to see a lot of choppy and back and forth behavior in this area. I do think that it is probably only a matter of time before we see momentum pick up to the upside yet again, mainly due to the fact that colder temperatures are coming to the United States and Europe, and that will cause traders to start buying natural gas.

The 200 day EMA is likely to continue to offer support near the $3.24 level. I think that $3.30 level is an area that I think is the beginning of that support. So, look at this as a range. If we do break to the upside, then $3.60 is a barrier. Breaking that, then opens up a much bigger move to the upside that I expect eventually.

I don’t like shorting natural gas this time of year. It’s simply going to have too much demand picking up as we are in the month of November, as far as the futures contract is concerned. And it’s likely that we are going to continue to see a lot of upward pressure as we go into the next couple of months, with the temperature dropping in America and Europe, driving demand higher overall.

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