Natural Gas Price Outlook – Nat Gas Gaps Higher on Monday

Natural Gas Technical Analysis

The natural gas markets have gapped higher to show signs of life and reach near the $3 level. If we can break above the $3 level, then we could go looking to the $3.15 level. The $3.15 level, of course, is an area that has been previous resistance multiple times. So, I do think that’s probably our next major battle. You could make an argument where we are in the midst of forming some type of bullish flag, we could keep that in mind as well. If that ends up being the case, then once we do break the $3.10 or so level, we could get to the upside and probably go looking towards the $4 level based on the measured move.

On the other hand, we could see a lot of back and forth sideways action with the $2.50 level underneath offering support, and again, the $3.15 level above offering resistance. Keep in mind this time of year is typically bullish for natural gas, so I do think sooner or later we do see that move higher, but right now we’re still in this massive consolidation range. This is something that is worth watching, as we could have some kind of massive shot higher once we break free. This time of year, can be a bit difficult, but at this point on the calendar, I never short this market. The market will continue to see more of a “buy on the pullback” type of situation.

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