Natural Gas Price Outlook – Natural Gas Continues to Wait for Momentum

Natural Gas Technical Analysis

The natural gas markets are still in the midst of consolidation, and we will have to determine what happens next, but I think ultimately you have a situation where the $3.50 level ends up being a lot like a magnet for price, especially as we are sitting at the bottom of a massive gap from the rollover into the December contract.

Historically speaking, this is a very positive time of year for natural gas, and therefore, I am looking to buy it, but we need momentum. We had the drop, we have been offered the value, now we need the next move to commence.

Seeking Market Momentum

A break above the 200-day EMA currently at the $3.63 level, could be thought of as that, but we will just have to wait and see whether or not momentum and volume follow. In the meantime, I do not feel particularly rushed to jump into this market, and I do recognize that this will almost be solely driven by weather report and storage, both of which are not necessarily working in favor of natural gas at the moment.

We will just have to wait and see. The weather this time of year in the northeastern part of the United States tends to be a major driver of demand and is very erratic. With this, I look at natural gas as a market as a situation where I am looking to get long; I just need some type of confirmation, basically a strong green bar that breaks above the 200-day EMA.

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