Natural Gas Price Outlook – Natural Gas Shoots Higher to Kick Off The Week

Natural Gas Technical Analysis

The natural gas market did gap higher to kick off the trading week on Monday to break above the $3.20 level in the spot market but has turned around to show signs of hesitation. That being said, futures markets typically don’t like gaps, so I could see where we would drop a little further and then rally again. Temperatures in the United States continue to be very cold, but with Syria collapsing, that kills the whole idea of a Russian natural gas pipeline through that country and that might have a little bit of a sideways knock-on effect, it’s hard to tell here.

But really at this point, I think you need to pay close attention to the $3 level, because that could give you an eye on where we are going next. The $3 level, of course, is a large round psychologically significant figure that a lot of people will be very interested in and I do think that there would be a lot of options trading around that region as well.

Because of this, if we can reach somewhere closer to that level and then bounce, that might be the sign that I’m looking for to get long of this market. The $3.40 level above continues to be a major barrier. So if we can break above that, then I think the market probably rips higher. But in the short term, I think you have to look at this through the prism of trying to find a little bit of value.

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