Natural Gas Technical Analysis

Natural gas markets fell initially during the early hours on Thursday, but then turned around to show signs of support. With that being said, the market is likely to continue to be very noisy, but the $3 level above is a significant barrier that I think is going to be very difficult to overcome. Keep in mind, we’re in the midst of a heat wave here in America, and that does have an influence on pricing, but we also have to also keep in mind that this time of year generally isn’t that positive for natural gas after all.

You have a situation where, unless it’s hot, the demand for natural gas, i.e. electricity, is going to be somewhat limited. Most people are outside. Also, another thing to keep in mind is, if the economy is slowing down, the demand for natural gas will drop. On the positive side though, we have a shortage in Europe yet again, and at this point in time, it seems as if that could come into the picture over the next several months.