Natural Gas Price Outlook – Natural Gas Continues to Show Buying

Natural Gas Technical Analysis

The natural gas market gapped higher to kick off the trading session here on Monday, but has now fallen enough to fill that gap. The question is whether or not we should be getting involved in this market at these lofty levels. For myself, I would prefer to see some type of bounce from a pullback that I can get involved in. I don’t like chasing natural gas all the way up here. I think you’re asking about major problems. Yes, there is cold weather in the northeastern part of the United States, and as I look out my window right now, I see snow on the trees. That’s a short-term thing, though.

I can tell you that it’s very likely only a matter of a few days before the temperatures turn right back around, and it’s 20 degrees warmer than it is today. So, with that being said, I am waiting to see if we get that weather report that really stuns the market, and then I will buy the bounce. $4 is possible as a launching point, but I really like the idea of somewhere closer to $3.75. That’s a long way from here, I understand, but at this point, you can’t chase something that is up about 40% from where the contract started. So, with that being the case, it’s going to be a game of patience.

If you’re already long of this market, do recognize that you’re getting very close to a major resistance level from last season. So, with that, I’d be careful. I’d start thinking about maybe taking some profit off the table or at the very least, tightening up stopping losses.

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