Natural Gas Price Outlook – Natural Gas Continues to See Sellers

Natural Gas Technical Analysis

The natural gas market has seen quite a bit of negativity during the early hours on Friday as we continue to see traders price in the idea of a potential slowdown in demand when it comes to natural gas as the temperatures in the United States and the temperatures in Europe, of course, start to climb now that we are out of winter. Furthermore, you have to question whether or not there will be as much demand for electricity as there once was due to the potential recession that seems to be looming out there. If that’s the case, demand will fall as well.

With that being the case, I think this is more of a “fade the rally” type of market. And now that we are below the $3 level, I find that very interesting as well, due to the fact that there are just too many things lining up at the same time that have broken below this major $3 level. And for me, that is a sign that we are going to fade into the lower levels that we spend quite frankly, most of the year. Rallies, I think, are going to continue to offer selling opportunities to at least the 200 day EMA, if not even as high as $3.50. I have no interest whatsoever in buying natural gas as it has a lot of troubles this time of year. Ultimately, this is a market that I think will continue to drive itself lower.

For a look at all of today’s economic events, check out our economic calendar.