Natural Gas Markets Looking to Bounce

Natural gas markets are certainly trying to do everything they can in order to bounce, but to me it looks as if it has an uphill battle decline, quite literally. The 200 day EMA currently sits at the $4.10 level, or at the top of the gap that we recently filled. Ultimately, I think this is a market that will continue to struggle to find its footing but given enough time we very well could see an attempt to recover a bit. That being said, we are getting ready to roll over into the month of March, which is typically a very bad time for natural gas in general.

NATGAS Video 24.01.22

When I look at this chart, the descending triangle above still measures for a move down towards the $3.00 level, and I think it is very likely that we will continue to see that level targeted over the longer term. I do not necessarily think that this is a situation where we need to get too cute, but I also recognize that we will continue to see a lot of noisy behavior overall. If that is going to be the case, that typically drives traders out of the market.

It is also worth noting that a lot of the storms in the northeastern part of the United States that had everybody up in arms and buying natural gas are now a thing of the past and we are going to start focusing on springtime. Springtime is not a time where a lot of natural gas demand comes into the picture, so I expect to see this market continue falling over the next several sessions.

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