Natural Gas Price Outlook – Natural Gas Continues to Grind

Natural Gas Technical Analysis

The natural gas markets have fallen just a bit in the early hours on Friday as we continue to see a lot of back and forth action right around the $4 level. The $4 level of course is a large, round psychologically significant figure that a lot of people will be paying attention to. And at this point in time, we probably need to pay attention to the 50 day EMA underneath offering support.

If we were to break down below there, then I think the natural gas markets really start to fall. Keep in mind this time of year is typically somewhat negative for natural gas as temperatures start to climb, but the reality is that the Europeans may be buying natural gas from America, thereby driving this contract higher.

Another thing to keep in mind is that there are a lot of concerns about a global recession and that will drive down the demand for natural gas as well. And if that’s going to be the case, it just gives us yet another reason to think that we fall. I don’t really like the idea of buying natural gas this time of year. So, most of the time I just sit here on my hands waiting for a sign that we are falling apart.

If we rally from here somewhere around $4.50, I think it is going to be a major resistance barrier that’s going to be difficult to overcome. With that being said, it’s still fade the rally for me, but I recognize it’s going to be a very stubborn market.

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