Natural Gas Price Forecast – Natural Gas Continues to Bounce

Natural Gas Technical Analysis

You can see that the natural gas markets have rallied slightly during the trading session on wednesday, as we continue to see a lot of noisy behavior, and it looks like we are trying to get to the $2 level. The $2 level also features the 20 day EMA, which of course is an indicator that a lot of people come into the picture. I have to add that the $2 level has previously been rather significant support and therefore, you need to pay close attention to it.

With this being the case, we could see resistance there, but if we break above there, I think there would be a lot of people willing to jump into the market and perhaps try to drive natural gas up to the $2.50 level. This of course, is an area that has been important more than once, so you need to pay close attention to it as there almost certainly be a reaction to this region.

Either way, the winter has been an absolute disaster, but we just hit a major floor in the market. And therefore, it’s not a huge surprise to see a reaction. Over the last couple of days, we have seen the natural gas market move basically about 30 cents. So that is a pretty sizable move. But when you look at the longer term chart, you can see just how dire the situation is. So, what I am going to do is wait to see if we pull back and make a higher low.

If we do, it’s very likely that I will put on a swing trade that may last a few months, but keep in mind, that summertime is typically not the strongest time of the year for natural gas, so getting above $2.50 probably is going to be asking quite a bit. In general, the natural gas markets look like they are waking up a bit, but that doesn’t necessarily mean that we are going to enter a bull market. Perhaps we’re just seeing short covering.

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