Natural Gas Price Outlook – Natural Gas Continues to See Noise

Natural Gas Technical Analysis

Natural gas has gone back and forth during the course of the early hours on Friday as traders continue to look for some type of momentum underneath, we have the $3 level, which of course, is a large round psychologically significant figure in an area that a lot of people will be paying close attention to. So, with that being said, the market is likely to look at that as a potential buying opportunity. To the upside, we have the $3.40 level above that offers quite a bit of resistance and breaking above there then allows the possibility of a true breakout and a bit of FOMO trading to the upside.

Keep in mind this time of year is typically very bullish for natural gas anyway, so it would make a certain amount of sense that traders look through this as a situation where they are trying to buy natural gas on the cheap in the time of year that it almost certainly has the most demand, and temperatures in the Northeastern part of the United States are cold at the moment.

Trust me, I stepped outside this morning to discover this. So, I do think there is probably going to be a little bit of a buy on the dip attitude in this market going forward. I have no interest in shorting natural gas right now, and I would be very interested if we could get closer to $3. But regardless, it’s a one way trade at least this time of year.

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