Natural Gas Price Outlook – Natural Gas Drops in Early Trading on Thursday

Natural Gas Technical Analysis

The Thursday trading session starts to see a little bit of positivity in the natural gas market, but that might make a certain amount of sense considering that we get natural gas storage numbers coming out on Thursday. It obviously will have a bit of an influence on the market expected to come in at 69 billion cubic feet held in underground storage. That being said, we are in a major technical region, right around the $3 level with a 50 day EMA sitting here.

And of course, the previous support and resistance level continuing to hold markets, I don’t necessarily think is likely to see a little bit of selling pressure before it’s all said and done, mainly due to the fact that it’s not really cold enough for heat yet in the United States, but it’s not really blazingly hot either.

So, given enough time, I would anticipate a little bit of softness. And then maybe we start to roll over into the November contract in a while here and really start to focus on cold weather. We are in the middle of the bottoming process, but we are showing signs of exhaustion over the last week or so. And therefore, it just looks like a market that needs to pull back slightly. And that makes a certain amount of sense. It’s a short-term trade if that does in fact happen, if we break down below the $3 level, perhaps for about 20 cents or so. And then at that point in time, you have to start thinking about those winter months where natural gas tends to rally quite nicely.

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