Natural Gas Price Analysis – Natural Gas Jumps on Colder Weather Forecast

And then, when you look at the charts, the $3.00 level, which I had mentioned Thursday and Friday, I believe, was an area where if you were going to see a bounce, that was where it could happen. Now we find ourselves sitting just below the 200-day EMA, and despite the fact that there will be an increase in demand, production is still elevated at the moment.

A Push and Pull Situation

So, I think you have a little bit of a push and pull situation here. If we can clear that 200-day EMA to the upside, then it opens up the possibility of testing the 50-day EMA near $3.83.

A pullback from here wouldn’t necessarily be the worst thing in the world. It could just be the continuation of a consolidation area, which could very well end up being an accumulation, as it is an extraordinarily cheap level for this time of year.

So generally speaking, I’m bullish, but I also recognize that we may have a couple of days of bouncing around between $3.00 and $3.50 to get confidence built back up.

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