Natural Gas Price Outlook – Natural Gas Continues to Watch the Middle East

Natural Gas Technical Analysis

The natural gas market has gapped higher to kick off the trading session here on Monday, as we continue to pay close attention to the idea of Iranian gas fields being hit. The market has been in a major consolidation area for a while now, and I think we will continue to look at the market through that prism. That being said, I also recognize that you need to be somewhat careful with the idea of getting too aggressive.

After all, all it would take is a bit of an errant headline to send the market either rocketing higher or falling apart. With that being said, I think you’re in a situation where you’re looking for an opportunity to fade the market. But again, you have to worry about headlines coming out of the Middle East. The $4 level is massive resistance, but we also see quite a bit of resistance near the $3.85 level as well. The 50-day EMA near the $3.55 level could end up being support. And then after that, we have the $3.50 level followed by the 200-day EMA.

This is a market that I think given enough time, we’ll have to come to terms with the fact that the lack of demand is a major issue, but I also think it is a market that has been defying gravity, if you will. This time of year, it is typically very so the play for me has been the same all along. If we get a spike higher, I fade the market for short term trades, as we don’t seem to have any longer term momentum going at the moment.

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