Natural Gas Price Outlook – Natural Gas Continues to Look Bullish

Natural Gas Technical Analysis

The natural gas markets rallied again during the early hours on Thursday as we continue to take off to the upside, going to struggle a little bit with the $3 level, but that’s fine. This is a large round number and an area that of course has caused some issues in the past, so it does make a certain amount of sense. That being said, we are trying to price in the cooler temperatures, and therefore I think it makes quite a bit of sense that demand comes into the picture, and it drives natural gas higher. Short-term pullbacks should offer a buying opportunity, and I think we probably get them.

If we do take off to the upside, somewhere around the $3.15 level begins a massive resistance barrier that will take significant work to get beyond. On a pullback, I think there’s a lot of support right around $2.68 in the form of the 50-day EMA, and I also recognize that some of the previous bullish momentum due to hurricane activity in the Gulf of Mexico is now a non-factor.

If that’s the case, then you have to look at this through the prism of a market that’s going to grind higher, probably not race higher. Keep your position signs reasonable because this is driven by the latest weather reports in the northeast and part of the United States, which has notoriously unstable weather. I don’t have any interest in shorting this market, but I certainly wouldn’t chase it up here.

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