Natural Gas Price Outlook – Natural Gas Continues to See Same Level of Resistance

Natural Gas Technical Analysis

Natural gas markets have rallied a bit in the early hours on Friday, but it does look like we are running into that same barrier at $4.40. That has been a major issue. Ultimately, this is a market that I think given enough time we will have to make a decision in this area as to whether or not we have enough momentum to continue going higher.

But as things stand right now, I suspect you have a situation where people are going to be struggling to pay these high levels, especially as, although there is a lot of cold weather in the United States at the moment, that will end in about a week or two. And at that point, we start to think about spring.

Spring, of course, will open up a selling season because demand will drop quite drastically. And that’s the next trade setup I’m looking for. We haven’t quite got it yet, but we’re getting close. We’re starting to see the market struggle going higher. The contract that we are trading in will be in April here in a few days and that of course comes into play as well.

So, with all of that I’m looking to short this market, but I’d at least like to see it break back below the $4 level before doing so. Friday is probably going to be a day where I’m sitting here watching this market more than anything else trying to get a handle on what the next move is.

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