Natural Gas Price Forecast – Natural Gas Continues to Bounce Around

Natural Gas Technical Analysis

The natural gas market has gapped lower to show signs of hesitation, but at this point in time, it does look like it’s still a very bullish market, we still have the $3,00 level underneath to offer significant support right along with the 50 day EMA. The market will continue to see a lot of volatility, but that’s nothing new for natural gas and this time of year, although typically bullish, is highly anchored to the idea of what the weather pattern’s going to be in the United States, especially in New England and the Midwest.

Short-term pullbacks I think do offer buying opportunities, but if we were to break down below the 50-day EMA, then we could drop down to the $2.50 level. I don’t think that will happen, but I do recognize that if we break through the 50-day EMA, it will kick off a lot of technical traders. The market will more likely than not continue to pay close attention to the $3.40 cents level. If we can break above the highs that we recently made right around $3.49, then it opens up the possibility of a move to the $4 level.

As things stand right now though, I think you’ve got a situation where we just simply see a lot of chop back and forth. And now we’re trying to do what we can with the idea of squeezing past this level. So I like buying dips at least this time of year, but I don’t know that I’m expecting anything major in the short term.

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