Natural Gas Price Analysis: Natural Gas Settles Down on Thursday After Wild Wednesday

Natural Gas Technical Analysis

The natural gas market has rallied ever so slightly in the early hours on Thursday after initially gapping lower. We’re currently hanging around the 50 day EMA, which in and of itself will attract a certain amount of attention. And therefore, I think we could and probably should expect a lot of noise. Ultimately, this is a market that, given enough time, will have to make a bigger decision. But right now, we’re right in the middle of what I would assume is going to end up being a larger consolidation area.

Most of the time, many years ago, this is a time of year when you start to think more about bearish behavior. I still feel that way, but you can see we did gap straight up in the air. And if you followed the analysis yesterday, I said you could not chase a 50 cent gap higher. If you did, you can see exactly why you cannot chase a 50 cent gap higher because we have given back about two thirds of that.

I do think that eventually we will go lower. I just don’t have the price action other than the candlestick from the previous session does suggest that we will eventually try to fill the gap and get back down to the $3.40 level. If we break down below there, then the $3.20 level, and then after that, the $3 level will be targeted. Lack of heating demand, I think, will continue to weigh upon the natural gas markets, but we’ll have to see. It’s been a really odd spring for this market.

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