Natural Gas Price Forecast – Natural Gas Continues to See Sideways Action

Natural Gas Technical Analysis

The natural gas markets have risen ever so slightly in the early hours on Wednesday as we continue to bounce around in the same range. At this point in time, it’s worth noting that the 50-day EMA underneath should be support. With the $2.50 level underneath there being even more support due to a large round psychologically significant figure, but it also features the 200-day EMA. In other words, there is a lot of buying pressure underneath. If we rally at this juncture, then the $3.15 level is possibly a ceiling in the short term, as it has shown itself to be important multiple times in the past as well.

All things being equal, this is a market that you need to pay close attention to because it will be paying close attention to weather. The weather so far in the United States has been a bit warmer than usual for this time of year, so that has suppressed some of the typical buying from the cyclical trade. But given enough time, I would fully anticipate that you see the cold temperatures start to come into the picture and really get the natural gas market moving.

I believe this is a buy on the dip market and it will probably continue to be so. Furthermore, if you’re a technical trader, you may look at this and see a bullish flag. I wouldn’t argue with that. I think we could see a fairly big move, but we need some type of catalyst. Right now, the weather just doesn’t seem to be cooperating.

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