Natural Gas Price Forecast – Natural Gas Continues to See Barrier Above

Natural Gas Technical Analysis

The natural gas markets have tested the $3.40 level for resistance, but continue to see that area offer massive, massive selling pressure. If we can break above the top of the candlestick for the trading session on Thursday, then perhaps we can be free to go higher, perhaps looking to the $4 level. Short-term pullbacks, I think, probably offer a certain amount of value that people will be willing to take advantage of.

The $3 level underneath is a large round psychologically significant figure and an area where we had seen action previously. The 50-day EMA is racing towards the $3 level, so that of course makes quite a bit of sense for it to hold as support. But overall, I think you’ve got a situation where we have one of two things getting ready to happen. We’re either going to continue to consolidate or we are eventually going to break out to the upside.

I don’t really have any interest in trying to short this market. I think it is far too strong to do anything like that. If we were to break down below the $2.80 level, then maybe we would go further to the downside. But really at this point, I’m not necessarily looking for that to happen. It is the coldest time of year in the United States and therefore, people will continue to look at this through the prism of demand.

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