Natural Gas Price Outlook – Natural Gas Continues to See Sideways Movement

Natural Gas Technical Analysis

The natural gas markets have risen a little bit during the early hours on Thursday as we continue to hang around in the middle of a massive consolidation phase. All things being equal, natural gas is a market that typically is more bullish than bearish this time of year and I think you probably continue to see that. The consolidation area is starting to form a bit of a bullish flag, so that is most certainly worth paying attention to, as is the idea that we found support near the 50 day EMA. Based on a potential measured move on the bullish flag breaking out, which would be seen spot natural gas breaking above roughly $3.02 you could see a move towards $4 and roughly 18 cents.

So, with that being said, I do think there is hope for a fairly big move later this winter as colder temperatures come into play, but right now we still have fairly mild temperatures in the northeastern part of the United States. From a technical analysis standpoint, the $3.15 level is quite a bit of resistance just waiting to happen, so I don’t think this is necessarily the easiest move, and I don’t even know that I would be looking for it as it is November.

You should also keep in mind that the natural gas markets that you trade in the CFD markets are based on futures prices, and futures markets are trading a few months ahead already. So, with that, the winter pricing ends a little bit quicker than you may anticipate, but we are still in the midst of trying to price in heavier demand from places like Boston, Cleveland, New York, Columbus, Pittsburgh, etc.

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