Natural Gas Price Outlook – Natural Gas Continues to See Struggles on Wednesday

Natural Gas Technical Analysis

The natural gas markets continue to see a little bit of noise during the trading session on Wednesday as $3 is front and center. The $3 level of course is a large round psychologically significant figure that would attract a lot of attention. And without looking, I would assume there will be a lot of options trades just waiting to happen in that region. I think the $3.20 level above, I think is the end of that resistance barrier. So, if we were to break above that level, we could take off.

All things being equal though, natural gas is going to continue to be noisy because although we are starting to trade the colder months of winter, the reality is that winters have been much milder over the last few years than they have been in the past. Part of the spike that we had seen recently, of course, had been due to the hurricane and all of that potential disruption, which has turned out to be no disruption.

So, with all of this being said, I look at the 50 day EMA underneath, current pricing right around the $2.75 level as a short term floor. I do think that we continue to see a lot of chopping and indecision, but cyclically speaking, I do think that this is a market that will continue to try to go higher over the next couple of months. Regardless, I don’t have any interest in shorting this market, and I think short term pullbacks could very well offer buying opportunities.

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