Business
Natural Gas Price Analysis – Natural Gas Continues to Drift Lower in Shoulder Season
In America, this is a time of year when natural gas demand is almost nothing. So, it is not a huge surprise to see that we continue to sell rallies, and we fail at the 50-day EMA.
Front Month Reliability at the 50-Day EMA
In fact, if you look at the 50-day EMA in the futures market, it has been pretty reliable in the front month contract going back to the beginning of February as a downtrend line. The $3 level sits just above there, and I think that is your ceiling until we get some type of heat wave.
We are nowhere near that right now. So, with that being the case, I think we do return to the $2.55 region. It does not mean we do it overnight and it could be a bit of a grind if nothing else.
With that being said, I like the idea that this market is one that we fade rallies. I typically do this time of year. I am not looking for big, massive drops. I am not putting big positions on. It is just a way to pad my portfolio.