Natural Gas Price Outlook – Natural Gas Looking for a Floor Ahead of Storage

Natural Gas Technical Analysis

The natural gas market initially tried to rally during the session here on Thursday, failing at the 200-day EMA before rolling over and falling again. We are waiting for the storage numbers, so this will probably change quite drastically, but I’d be very interested in this market if we could break above the 200-day EMA. It would be a very positive sign, perhaps opening up the possibility of a move to the $4 level. This is a major round number that a lot of interest will be paid to.

At this point, it looks like we are still in the midst of trying to consolidate and build some type of base because, quite frankly, the weather has been cool enough that natural gas demand has been reasonable, but it’s not been enough to take out storage. We’ll get more information later in the day.

Support Levels and Market Outlook

If we do fall from here, $3 I assume, has to be a very significant floor in the market. This is not only based on the large round number, but by the time we get there, we might be testing a longer-term trendline that goes back several seasons, so we’ll just have to wait and see.

Ultimately, I do think you’ve got a scenario where you are looking to buy dips as they occur, but we need some type of momentum in the form of a drawdown of storage to really get this thing going. Until then, a bit of patience will be needed with the natural gas markets.

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