Natural Gas Price Outlook – Natural Gas Continues to See Falling

Natural Gas Technical Analysis

The natural gas market has gapped lower to kick off the trading session on Monday, thereby showing even more negativity heading into trading and the futures markets. And now we find ourselves below the 200 day EMA. The 200 day EMA of course is an area that a lot of people will be paying close attention to as it is a long-term support and resistance barrier that a lot of traders will use to determine the trend.

This time of year, is obviously a major problem with the natural gas market due to the fact that heating demand does drop in the United States as well as Europe. And typically, you will see the markets sell off. Furthermore, you also have questions about a potential recession globally, and that would influence the direction of pricing of natural gas.

There was a recent rally, but I suspect that the rally probably was more about refilling natural gas storage as we are at that time of year where we have to accumulate a bit of natural gas after using so much during the winter. For the next couple of months though, we don’t really have major demand for natural gas, at least not until it gets really hot, which is used for electrical production for AC in the United States. Because of this, I am bearish. I have been for a while. I sell signs of exhaustion after short-term rallies, and I do think that natural gas is looking to the $3 level.

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