Natural Gas Price Outlook – Natural Gas Continues to See Pressures

Natural Gas Technical Analysis

The natural gas market initially did try to rally on Wednesday, but it looks like the 50 day EMA offered just enough resistance to keep the market down. With that being said, I think this is a scenario where rallies continue to get sold into, especially now that we have a ceasefire in the Middle East. That, of course, was a major factor. And with that being the case, we just don’t have a situation where the natural gas market will spike unless of course we get more headlines out of the Middle East or we get another heat wave, because recently we’ve had a heat wave in the United States, but that’s going on presently and is expected to go away in a couple of days. So that’s the other major factor that has pushed natural gas higher.So here we are.

At the $3.50 level, I do see a little bit of support. We’ll see if that holds. If it doesn’t, then the 200 day EMA at $3.37 will more likely than not be targeted. Natural gas is very weak this time of year typically. And when I look at the longer term chart, you can even somewhat make an argument for some kind of rising wedge. It takes a little bit of artistry, but you can get there if you squint your eyes. So, with that being said, I do think that a return to the lows is coming. I don’t know how long it’s going to take, but I certainly would not be a buyer of this market.

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