Natural Gas Price Outlook – Natural Gas Continues to Bounce Around

Natural Gas Technical Analysis

The natural gas market initially tried to rally a bit during the course of the trading session on Wednesday, but at this point in time, it still looks as if it is going to struggle, breaking above the 3.15 level. With this being the case, I think you’ve got a situation where short-term pullbacks offer value, and it’s probably worth noting that the $2.50 level underneath is a massive support level. This is an area that is going to be massive with its implications as to where we go in the future.

This area being broken to the downside would of course be very negative, but ultimately, I think this is a scenario where you have a lot of volatility more than anything else. That being said though, if we were to break above the $3.15 level, then it opens up a much bigger opportunity for a FOMO trade and perhaps more of a buy and hold situation.

With this, I like the idea of looking for value and taking advantage of it as long as we can stay above $2.50. If we were to break down below there, especially considering how this is typically a very bullish time of year, that would be a horrific look. However, most of the time what you’ll see is the market consolidate like this and then make another leg higher when we are in the cold months as of course demand picks up in the northeastern part of the United States.

For a look at all of today’s economic events, check out our economic calendar.