Natural Gas Price Outlook – Natural Gas Price Drops to Kick Off Friday

Natural Gas Technical Analysis

The natural gas market has gapped lower to kick off the trading session on Friday. With that being said, the market is in the middle of a pullback that, if you remember, I was talking about potentially filling a gap or maybe testing three dollars. We haven’t quite gone to the part where I’m willing to buy yet, but we are getting there. I like the idea of it dropping further and bouncing, or maybe even bouncing from right around here and showing upward momentum. At that point I’m willing to step in and buy because it is a cyclical market.

After all, the United States will start to get colder temperatures, as will Northern Europe, and therefore demand will pick up. When you look at natural gas from a longer-term standpoint, you can see that the market has been climbing right along this uptrend line. So, I guess in theory we could go that low, but I don’t think it happens, though. I think somewhere in this gap, from a couple of weeks ago, there are plenty of buyers.