Natural Gas Price Outlook – Natural Gas Continues to Look Noisy

Natural Gas Technical Analysis

The natural gas markets have drifted a little bit lower during the early hours on Tuesday as we continue to see a lot of noisy behavior. At this point in time, I think you have to look at this as a market that will continue to be somewhat choppy and perhaps even a little lost at the moment, but ultimately, we will be paying attention to winter. That’s just how natural gas rolls.

The Northeastern part of the United States is the biggest driver of natural gas demand, although it can change from time to time, and at this point in time, the weather is cold, so it does make sense that the price is a little bit elevated, but the question then becomes about electrical demand. And of course, situations around the world that may or may not demand more US natural gas.

As far as the technical analysis is concerned, it is a positive market, but the $3.40 level above has been like a brick wall for traders to try to get above. So, in this environment, I think you just continue to see some type of consolidation. The $3 level sitting just below does offer a certain amount of support. If we break down below there, then you look for a bounce from the $2.80 level or so. I am a buyer, not a seller, but at the same time, I don’t get married to any one position in natural gas.

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