Natural Gas Price Outlook – Natural Gas Continues to See Buyers

Natural Gas Technical Analysis

The natural gas markets have shot straight up in the air again during the early hours on Friday, mainly due to European concerns about supply. Vladimir Putin seems to think that a deal can’t be made for Russian gas to enter the EU, which is a very strange thing to say out loud to begin with, but that’s the way it’s been for several years. While the Russians and the Ukrainians are at war and the Europeans are funding the Ukrainians, while the Russians are shipping gas through Ukraine and other countries into the EU.

So, with all of that being said, how this affects the natural gas market is that the US natural gas market, Henry Hub, which is the one that 99.9% of you are trading, tries to anticipate the idea of more exports going to the EU. Whether or not that is actually going to be the case remains to be seen, I do think that the $3.15 level underneath is starting to form up as a pretty significant floor. We have the 50-day EMA sitting underneath there and rising. While the market continues to pay close attention to the $3.50 level as a short-term ceiling, I do think that we will probably go a bit higher. I would recognize that maybe $3.75 is possible at this point, we’ll just have to wait and see. Regardless, short-term dips should offer short-term buying opportunities.

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