Natural Gas Price Outlook – The Natural Gas Market Continues to See Buyers

Natural Gas Technical Analysis

The natural gas markets initially tried to rally a bit during the trading session on Thursday breaking above the $3.40 level. The market has then pulled back just a bit, but I think you’ve got a situation where traders are going to be looking at this through the prism of whether or not we can find enough momentum to finally launch. We are most certainly pressuring the upside, and I do think that given enough time, that’s probably exactly what happens.

This time of year is typically pretty bullish for natural gas anyway, so not a huge surprise or stretch to think that we would see this market rally. Short term pullbacks at this point in time will continue to be interesting buying opportunities all the way down to at least the $3 level. The 50 day EMA currently sits right around the $2.85 level and is rising, so think of that support area near the $3 level as a zone of support, if you will. That being said, I have no interest in shorting this market anytime soon because quite frankly, this time of year it’s just dangerous to do that with natural gas.

I also would watch my leverage though, because natural gas will move on the latest weather report. It just so happens this year, it’s been a little cooler than normal in the Northeastern part of the United States, so that’s had a major impact here. If we can take off from here, the $3.50 level will be the first level that people pay close attention to, but after that, we’re probably going to go and try to get to the $4 level.

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