Natural Gas Price Outlook – Natural Gas Continues to Pressure The Ceiling

Natural Gas Technical Analysis

The natural gas market has pulled back just a bit during the trading session on Thursday in the early hours as we continue to focus on the heavy demand and Withdrawal of natural gas supplies that we had seen over the winter Because of this we are starting to see natural gas, you know continue its moment here But whether or not this remains to be a long-term thing I think that’s a bit of an open question while there is more demand from places like Europe as there is less supply in the market for those markets.

The reality is that sooner rather than later, temperatures will start to rise pretty significantly in the United States. The forecast for next week is actually pretty warm. Think room temperature. So, it’s very likely that we are getting very, very close to that end of the winter trade.

This does tend to be a very volatile time, but because of this, I want to take my time and see a nice surge lower to get involved in a short position. As far as buying is concerned, if it wasn’t for the seasonality, that would obviously be the trade here. But the last thing I want to do is be the last buyer of natural gas for the season.

The risk to reward ratio just is not that appealing to me right now. So as much as it pains me to not participate in what’s been such a strong three days, the reality is the move I’m looking for is a lot bigger than this. So, we’ll have to wait and see, but right now we’re still just flirting with that top and we’ll have to see if we can break through it. If we do, it could open up a move to the $5 level, which, quite frankly, I hope it does, because I can short it from a higher level at that point, as soon as we start to price in the warmer weather.

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