Natural Gas Price Outlook – Natural Gas Pulls Back Early on Monday

Natural Gas Technical Analysis

The natural gas market has rallied a little bit in the early hours here on Monday, but it looks like we are pulling back toward the $5 level. The $5 level of the course is a large, round, psychologically significant figure and an area that a lot of people will be looking at very closely. If we break down below here, then we could look into the $4.80 level, which is where we launched from three trading sessions previously.

If we were to break down below there, then $4.40 could be a target. That being said, I don’t want to short this market. What I want is some type of pullback and bounce. It could very well happen at the $5 level. So, pay close attention to that as well. $5 has historically been a major barrier. So, if we bounce from here, we could be looking at a move all the way to the $7 level before it’s all said and done. We’ll just have to wait and see.

This time of year is very bullish for natural gas, and we have had cold temperatures in North America, which has a major influence on what’s happening here because, for once, the winter is actually real. So, we’ll have to wait and see whether or not that continues. I think a short-term pullback is a gift, and that’s what you need to look at it as such. The markets, of course, will sell off in the spring. They always do. I’ll be watching.

There is also the chatter about AI needing more power, meaning more natural gas. I don’t really think that’s a thing yet. I think that’s a long-term driver, maybe. We’ll just have to wait and see. But as things stand right now, I’m focusing more on the weather. The weather’s cold, the price is up. That all makes sense.

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