Natural Gas Price Outlook – Natural Gas Drops Again in the Early Hours of Monday

Natural Gas Technical Analysis

The natural gas market has fallen a bit during the trading session on Monday right away as we continue to see a lot of negativity out there when it comes to the idea of demand for natural gas. Ultimately, this market, I believe, continues to be one that has to deal with the idea of a lack of demand due to mild temperatures and of course, not being a season conducive to a lot of strength anyway.

After all, there aren’t a lot of people heating their homes in the Northeastern part of the United States right now. And it’s also worth noting that although it is summertime, it hasn’t been extraordinarily hot. So, with that, I think you’ve got a scenario where a lot of people are looking to fade this market every time it rallies. I know I am.

The $3 level I thought would be a barrier. It has been so far. I believe above there you have $3.20, also offering a barrier. To the downside, if we break the $2.75 level, we could go looking to the $2.50 level, where we had a gap back in October of last year. We just broke what was essentially a quadruple bottom. So that obviously is very negative. Now I do believe that natural gas recovers in the next few months. I just don’t think we’re there yet. So, I continue to fade signs of exhaustion in this market as I have been for a while.

For a look at all of today’s economic events, check out our economic calendar.