Natural Gas Price Outlook – Natural Gas Takes Off on Friday

Natural Gas Technical Analysis

Natural gas has broken higher during the trading session on Friday again, as we are now well above the $5 level. This is a market that is very slippery at times, and it is worth noting that we are getting an Arctic blast in the northeastern part of the United States over the weekend, which drives up demand. It’s actually been pretty cold for a few weeks. This time of year is generally cold, but it’s actually colder than usual. So, demand is up, price is up right along with it, as you would expect.

At this point, you have to have pullbacks to buy this market. That’s kind of been the game all along. And now I suspect that since we have broken above the $5 level and then pulled back below it and then broke above it again, all within about 48 hours, I think $5 is basically your floor. I said a few days ago that if we could break $5 and clean, then we could go as high as $7, like we did a while back, back during the winter of 2022. I think we’re about to make that move, actually. This was extraordinarily impressive. Normally, you get some type of significant pullback that you can take advantage of, and unfortunately, that’s what I’ve been waiting on, and it just never came.

The problem with natural gas is that most retail traders will trade it, thinking that it’s one thing, and the reality it’s a weather forecast on the northeastern part of the United States, a presentation and thought process, an exercise of transmission lines in the United States. And of course, then you start to talk about exports. All things being equal, though, this is a market that, when it dips, there’ll be buyers.

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