Natural Gas Price Outlook – Natural Gas Continues to Look Soft

Natural Gas Technical Analysis

The natural gas market has drifted a little bit lower during the early hours on Thursday as we continue to see a lot of noisy behavior in this market. It’s worth noting that we are hanging around the 200 day EMA. But what I look at is the overall structure as we fell from the recent highs at $4.90 all the way down to the $2.90 level, have bounced to the 50 day EMA and then the 50 % Fibonacci retracement level, and then have fallen from there.

So, with that being said, this is a market that I think is continuing the downtrend. And I do expect to see the natural gas markets fall enough to test the crucial $3 level. I don’t have any interest in buying and this time of year typically demand drops pretty significantly anyways. So, it all comes back to being a cyclical trader for myself.

Ultimately this market I think continues to be very noisy and difficult to time, but I do have a downward bias and since we scored a shooting star for the previous session, it does make sense that the sellers have come back in and started to make their presence known here again in a market that quite frankly has a long way to go before demand picks back up.

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