Natural Gas Price Outlook – Natural Gas Continues to See Volatility

Natural Gas Technical Analysis

The natural gas markets have fallen rather significantly during the early hours on Tuesday as we are coming to grips with the fact that we are getting close to the end of the season. And of course, the trade war, or at least potential trade war between the United States and Canada seems to be averted for the moment. That of course has major influences on where price goes when it comes to natural gas.

There is a significant trend line underneath that I think continues to offer some support. So, it is worth watching, but I’d also pay close attention to the 200 day EMA because that could come into the picture also. The $3.50 level above I believe ends up being a significant resistance barrier and if we could break above there, then I think we could race to the $4 level, but that would be in reaction to some type of cold snap. And I think ultimately, that ends up being a selling opportunity in this market.

After all, this is a market that, of course, is very cyclical and as the futures contracts are now focusing on the month of March, it makes a certain amount of sense that we would be looking at this through the prism of warmer temperatures coming sooner rather than later. I think ultimately you have a scenario where traders will continue to look at this as a sell the rally on signs of exhaustion type of setup. If we break down below the 200 day EMA, the bottom will fall out.

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