Natural Gas Price Outlook – Natural Gas Looking to Find Support on Friday

Natural Gas Technical Analysis

The natural gas market looks as if it is hanging around the 50-day EMA, which is a major technical indicator that a lot of people will be paying close attention to. The $4.20 level is an area that has been supported previously, and the fact that the 50-day EMA is sitting in the same area suggests that we may see a bit of a cushion and possibly some buying.

I think this is a zone of support that extends down to the $4 level, so we will have to wait and see. That being said, if the market were to rally to the upside, I am willing to buy with some type of momentum coming into the picture.

Seasonal Demand and Key Levels to Watch

If we break down below the $4 level, that would obviously be a different turn of events. However, if we can break above the $4.40 level, then the market could go looking toward the $5 level. This time of year is typically very bullish due to demand and cold temperatures in the United States and Europe, and another warning has just been issued that cold temperatures are coming back.

With that in mind, there could be a scenario where the market starts to turn around. Traders are likely to continue seeing a strong buy-on-the-dip attitude, and a lot of value has already appeared. Overall, the outlook is cautiously optimistic, but waiting for the market to bounce before buying makes the most sense.

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