Natural Gas Price Outlook – Natural Gas Continues to Bounce Around

Natural Gas Technical Analysis

The natural gas markets have rallied a bit during the trading session on Wednesday in the early hours, but we continue to see a lot of noisy behavior. And quite frankly, this is a scenario where traders continue to look at this through the prism of whether or not winter is over. We have a little bit of a mixed emotion in the market due to the fact that temperatures are rising in the United States and that’ll crush demand. But at the same time, we have seen quite a bit of depletion of the stores and the storage of natural gas around the world over the winter.

We do have some questions to ask about Russian natural gas, whether or not it’ll end up in the EU going forward. But we are getting to that point where the only thing that’s going to keep natural gas higher might be inflation, but it is starting to roll over a bit. And I’m watching a big area here right around the 50 day EMA, the $4 level, that general vicinity, because if we were to turn around and break down below there, then I think you have a situation where traders will be looking at a potential short. This happens every year, so that’s not a huge surprise. It’s a cyclical market. Demand picks up in the winter and it drops off in the spring. So that’s what I’m looking to take advantage of here.

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