Natural Gas Price Outlook – Natural Gas Continues to Look Noisy

Natural Gas Technical Analysis

The natural gas market rallied ever so slightly in the early hours on Thursday as we continue to see a lot of questions asked about the overall trajectory of the market. While I do think that natural gas will probably be bullish over the next couple of months, mainly due to the cyclicality and the seasonality of the trade, but also due to the fact that momentum has been with the buyers. With traders now pricing in the cold weather months of the Northeastern part of the United States, that continues to provide a little bit of a boost for the pricing of this asset, as the natural gas market continues to see a lot of seasonality.

From a technical analysis standpoint, we have the 50-day EMA hanging around the $2.70 level and rising to offer support. At this point, if we can turn around and break above the $3.15 level, then it’s likely that the natural gas markets will continue to go higher for its next move to the upside. The chart is forming something along the lines of a bullish flag, but we’ll just have to wait and see how this plays out.

With all of this being said, I remain bullish, but I also recognize that this is going to be a very noisy market in this general vicinity, but all of that tied together still sees a lot of support underneath, so keep an eye on pullbacks as potential buying opportunities in the spot market here against the natural gas markets.

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