Natural Gas Price Outlook – Natural Gas Pulls Back

Natural Gas Technical Analysis

The natural gas markets have gapped a little bit lower during the early hours here on Friday, as it looks like we are in fact probably going to pull back finally. Last Friday, we switched over to the November contract and of course shot straight up in the air, something that does make a certain amount of sense as November is the beginning of colder months and therefore more demand.

This pullback is very likely to open up a potential move down to the 200 day EMA to the $2.23 level and I’ll be watching to see if we react to it. If we fall below there, then I think the gap might be get tested here, perhaps sending natural gas down to $3. I would love to see that.

Anything like that and a bounce would be very attractive to me, and I would start buying immediately. After all, this is a cyclical market, and we are entering that phase of the year when natural gas becomes very interesting to me. I have been a seller for quite some time, but now we’re starting to flip over to positivity and we’re going to have to look at this market through increasing demand thereby I think eventually we will go looking at the $4 level, but it will take some time to get there.

This is a process, not an overnight move. With that being said, I am hoping for a deeper correction that I can take advantage of. It’ll be a day to day thing here, but I would love to get involved closer to $3. The closer we get to a bounce, the more excited I get about owning natural gas.

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