Natural Gas Price Outlook – Natural Gas Continues to See Ceiling

Natural Gas Technical Analysis

The natural gas markets have initially rallied during the early hours on Thursday as we continue to see the $3.40 level offer a significant amount of resistance. All things being equal, this is a market that I think continues to see the $3.40 level offer a lot of problems. With this being the case, I think we’ve got a situation where market participants are just simply buying the dips, trying to build up enough momentum to finally break above this level, which if you look, matters all the way back to January 24th of 2023.

So, a break above this area could send the market as high as four, maybe even $5. We’ll just have to see what the momentum is when we try to get there. In the short term, though, I think we are basically consolidating between the $3 level underneath and the $3.40 level just above. Ultimately, I think this is a market that remains very noisy, but I also think that it is going to continue to follow the cyclical trade as temperatures plunge in the US.

Ultimately, I do think that we’ve got a while to go, but sometime later in the next month or two, we’ll start to see futures price in the idea of spring, and that of course will affect the CFD market. In the short term though, I think a pullback probably offers a short term buying opportunity if you are nimble and willing to watch the move.

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