The natural gas market continues to see a lot of buying in general, as the market continues to see more demand for heating in the US. However, we are filling the gap after pulling back on Tuesday, so we will have to see if the market bounces from here.
Natural Gas Technical Analysis
The natural gas markets fell a bit during the early hours on Tuesday to reach the $3 level but at this point in time it looks like we are going to be done filling the gaps. So it’ll be interesting to see whether or not we can get a little bit of a balance in order to start going long. At this juncture, I think you’ve got a situation where somewhere between $3 and $2.88 in the area where a lot of buyers probably get involved.
If we turn around and take on to the upside, then it’s likely that the $3.40 level above will be targeted. It might take some time to get there, but keep in mind that we are in the midst of a cold season in the United States, which obviously will have a major influence on demand for heating. Natural gas of course has a lot of geopolitical factors at the moment, so really at this point I think you have to look at this as a market that is willing to take advantage of dips in order to pick up cheap gas. I don’t have any interest in shorting.