Natural Gas Technical Analysis and Near-Term Outlook
This is a brief analysis for the next day or so. Our weekly Natural Gas Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key natural gas futures contracts, calendar spreads, the UNG ETF, and several electricity contracts. If you are interested in learning more, please sign up for a complimentary four-week trial.
Natural gas rallied today and settled just above the 62 percent retracement of the decline from $3.639. The move up stalled just below the $3.42 equal to (1.00) target of the wave up from $2.977 before pulling back. The $3.42 target is a potential stalling point. Even so, today’s rise was bullish for the outlook in the coming days.
A test of $3.42 is expected. Settling above this will call for a push to challenge the $3.50 smaller than (0.618) target of the wave up from $2.800. This is also the XC (2.764) projection of the first wave up from $2.977. Settling above $3.50 would confirm a bullish outlook and open the way for $3.56 and then another key objective at $3.64.
Should the pullback from $3.404 extend look for initial support at $3.30. This level will likely hold. Taking out $3.30 will call for a test of the 38 percent retracement of the rise from $2.977 at $3.24 and possibly key near-term support at today’s $3.19 open and the 50 percent retracement.
