Natural Gas Price Outlook – Natural Gas Continues to See Same Barrier

Natural Gas Technical Analysis

The natural gas markets pulled back just a bit during the early part of the session on Wednesday, as we continue to see a lot of noisy trading. Just above current trading, we have the $3.40 level offering a bit of a barrier and I think that continues to be the issue. But I would also point out that every time we have pulled back, we have seen buyers come back into the picture and try to push things to the upside. Even if we were to fall from here, the $3 level underneath will probably be pretty supportive as we have seen it a couple of times right along with the 50 day EMA which is rapidly approaching that region.

Natural gas typically is very bullish this time of year and temperatures are falling again in the northeastern part of the United States. So that does have a major influence on what we see here. If we can break above the $3.50 level, in other words clearing $3.40 rather handily, then it opens up another move towards the $4 level. In general, I think this is a situation where we continue to see a lot of choppy volatility and more of a buy on the dip type of market, at least for the time being. This is a market that I have no real interest in shorting anytime soon.

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