Natural Gas Price Outlook – Natural Gas Drops in Early Tuesday Trading

Natural Gas Technical Analysis

The natural gas market has fallen a bit during the early hours here on Tuesday, losing a little over 2 % as we are now threatening the 200-day EMA. With this, I think we’re looking at a situation where the market is trying to build up enough momentum to go higher. But also keep in mind the futures market switches over on Wednesday into the December contract. So, it’ll be interesting to see how this plays out. I’m still bullish, and we are still in a time of year that typically is good for natural gas. So, I certainly don’t have any interest in shorting it as the cold weather approaches.

With that being said, the $3.60 level is a major resistance barrier. And if we can break above there, then I think you’ve got a real shot at this thing taking off towards the $4 level. And I do think that happens given enough time. I’ve got no interest in shorting, like I said, and I believe at this point that the $3 level is your floor. Colder temperatures are obviously coming, and the December contract of course, is a contract that features such higher demand, and I think it’s probably only a matter of time before we not only break the three sixty dollars level but pick up some type of impulsive bullish move. If you can be patient, natural gas should be a winner over the next several weeks or months.

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