Natural Gas Price Outlook – Natural Gas Continues to See Support

Natural Gas Technical Analysis

The natural gas market has gapped a bit during the early hours here on Thursday then kind of went back and forth as we are trying to form some type of bottoming pattern right around the $3 level. The $3 level of the course is a large, round, psychologically significant figure that a lot of people will be watching. If we can break above the 50 day EMA, then I think that frees a lot of upward momentum.

We had a massive gap a couple of weeks ago when we rolled over into the November contract, which shot higher. And now we have pulled back enough to fill that gap. At this point, I am expecting natural gas to start picking up a little bit of traction. We’ve had the pullback from the gap. Now I’m looking for momentum to the upside. If we get that, then I’m a buyer of natural gas because as we get later in the year, obviously, demand will pick up in places like the United States and Northern Europe.

Furthermore, there is supposed to be a bunch of energy bought by Europeans from the United States. And this of course, almost certainly means some natural gas. I don’t have the details as to the mix. The next contract flip over is in about two weeks or about halfway through the November contract. And when we roll over into the December contract, when you really anticipate cold temperatures and therefore more demand. This is a very cyclical market. I’m just trying to play the cycle. A little bit of caution, a bunch of patience and proper sizing position could set up for a nice swing trade.

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