Natural Gas Price Outlook – Natural Gas Drifts Lower in Early Tuesday Session

Natural Gas Technical Analysis

The natural gas market has slipped a little bit during the early market hours on Tuesday, but really, at this point, I think what we’re trying to do is substantiate that the $3 level is a major support region. This does make sense because it’s a large, round, psychologically significant figure, but it is also an area that had seen a gap previously. With that being the case, I think you have to look at this through the prism of a market that is more likely than not going to be a bit bumpy and noisy, but we also are going to be focusing on the idea that colder temperatures are coming for the winter. We are trading the November contract, and at this point in time, we are halfway to reaching the December contract.

Natural gas storage continues to pay close attention to the fact that it is getting a little bit of a draw. And you can see that US forecasts are starting to turn a little bit cooler, which makes sense this time of year. And with all of that, it is a reason to believe that natural gas will start to enter its cyclical trade, which this time of year is typically higher. I don’t have any interest in shorting natural gas, and I do think that it is probably only a matter of time before we try to get back to the $3.50 level. Therefore, I’m bullish, but I’m not foolish when it comes to natural gas. I’m not buying huge positions. I’m just making a small part of my portfolio.

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