Natural Gas Price Outlook – Natural Gas Continues to Grind Higher

Natural Gas Technical Analysis

The natural gas market rallied a bit during the early hours of Tuesday. As the market continues to see a lot of upward momentum, a short-term pullback would clearly open up the possibility of value hunting. And I think the $3.40 level is an area where a lot of people would be very interested based on market memory. That had been pretty significant resistance previously. That being said, the cold weather in the United States continues to make natural gas an interesting buy. But I don’t necessarily think you want to jump in with a huge position and chase it wildly here.

A little bit of a pullback offers a lot of value. The floor in the market is probably somewhere near the 50 day EMA now, which is at the $3 level. Longer term, I do think the market probably reaches $4. And if it breaks above there, possibly 4.20. But it’ll be interesting to see if the momentum can come into the picture. After all, natural gas does have a nasty habit of reacting quite viciously to warmer than anticipated temperatures in the winter. And we may just get that. So far, it’s been a fairly cold winter in the United States, at least it’s been early. So, it’ll be interesting to see if that keeps up. If that keeps up, the natural gas should have a good run for a couple of months.

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