Natural Gas Price Outlook – Natural Gas Continues to See Consolidation

Natural Gas Technical Analysis

The Natural Gas market has bounced ever so slightly from the 200 day EMA in the early hours of Friday, as we have to keep in mind that it was a shortened holiday trading session due to the Independence Day in the United States. So, the liquidity and volume, of course, are an issue when trading in these conditions, so, most people just simply don’t.

The market has been hanging around the same area for a while and now it looks like we are trying to perhaps find a direction, but I suspect we get more of the same type of action that we’ve had recently where the market will rally from time to time, but it ends up being a selling opportunity.

Keep in mind that the time of year is typically pretty poor for natural gas, but we recently had a heat wave and of course the Europeans are not buying gas from Russia anymore. So that makes a bit of a difference as well as Americans are exporting more.

Nonetheless, I still like the idea of shorting any move that is too aggressive to the upside and start selling off. A move down to the $3 level is very likely, and that is my target for some time in the next couple of months. But you can see for the most part, we’ve just been chopping back and forth. Natural gas is a little bit of a noisy market under the best of conditions. And right now, we just aren’t in the best of conditions.

For a look at all of today’s economic events, check out our economic calendar.