Natural Gas Price Outlook – Natural Gas Continues to See Volatility

Natural Gas Technical Analysis

The natural gas futures market has gapped higher to kick off the trading session here on Thursday, as we are threatening the 50 day EMA now. We did get an EIA report that energy consumption is up by 1 % year over year for the month. And that may be part of what we’re seeing here, but ultimately cooler temperatures are coming to the United States and that will put pressure on natural gas futures overall. I do think that rallies are to be sold into and we’re already starting to see a little bit of softness here. We bounced from the bottom of a messy rising wedge, but you can also make an argument for a trend line and the 200 day EMA coming into the picture here at $3.40.

So really, I think you are more or less looking at a market that is trying to break through all of those, perhaps going down to the $3 level, but that doesn’t necessarily mean that it slices right through it. After all, we did have three very brutal negative days in a row, so it does make a certain amount of sense that we would see a little bit of a pushback.

Nonetheless, I still like the idea of fading signs of exhaustion, and I have no interest whatsoever in trying to buy this market this time of year. I just recognize that it is going to be very volatile, that is typical for natural gas, and of course, move on the latest weather reports for the northeastern part of the United States.

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