Natural Gas Price Outlook – Natural Gas Continues to See Drift Lower

Natural Gas Technical Analysis

Natural gas markets have fallen during the early hours on Wednesday as we continue to see a lot of fluctuation in price. Having said that, the last couple of days have been kind of tough, and while the sell-off has been extraordinary, the rise to get to the level to sell-off was even more so. In other words, a sharp rally like we have seen deserves a sharp pullback. However, we are starting to see buyers jump back into the market, so it’ll be interesting to see how we finish.

If we can rise above the $3 level, that would obviously be a very bullish turn of events and could send natural gas looking toward the $3.40 level again. China just finished a major pipeline on Monday that goes back and forth between China and Russia. So that could have an effect on the markets, peripherally at least, but we still have cold temperatures in the United States and that will be a driver of natural gas also. So, with this, I’m still bullish still think natural gas probably rises from here. But the question is, will we get the balance that we can take advantage of?

After all, natural gas is an extraordinarily volatile market under the best of circumstances. And with it being the cyclically bullish time of year, a lot of traders probably felt pretty good of taking a 90 cent profit or perhaps even more on their contracts and simply have walked away. Now we’ve pulled back about 50% of the recent surge higher after the gap in the early part of the month. So, things get interesting here. I’m looking for a bounce that I can play into. I haven’t seen it yet, but we are getting fairly close to it, I believe.

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