Natural Gas Price Forecast – Natural Gas Continues to See Support

Natural Gas Technical Analysis

The natural gas markets have balanced ever so slightly during the trading session on Monday as the 50 day EMA seems to be coming into the picture and offering a bit of support. Ultimately, this is a market that I think will go looking toward the $3 level, and then eventually the $3.15 level. Overall, you can make an argument for a double top, but I think we have a little bit more juice left in the trade simply due to the fact that we are going to get colder temperatures sooner or later. Remember, futures markets typically trade a couple of months from what you’re trading on the CFD market. So, they generally speaking right now are trading somewhere around December.

If we continue to rally from here, it will be somewhat short-lived. You probably have a spike higher and then at that point in time, we’re getting kind of close to the time of year when natural gas fades off again. The hurricane issues have come and gone, they’re no longer on the forefront of thinking, and I think that’s part of why we had this big pullback of basically 16%. It is getting a little oversold. We’ll have to wait and see if we can bounce.

If we break below the 50 day EMA, then that could send the market down to the 200 day EMA, which of course is a major, major indicator that a lot of people will be paying close attention to. Anything below there would be very ugly for natural gas. I don’t put a lot of leverage into my natural gas positions because quite frankly, this is a market that is far too volatile to do so. With all of that being said, I am bullish, but mildly so.

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