Natural Gas Price Forecast – Natural Gas Markets Break Big Figure


Natural Gas Price Forecast - Natural Gas Markets Break Big Figure

Natural gas markets have rallied a bit during the trading session on Wednesday, reaching above the $3.00 level, an area that of course is a large, round, psychologically significant figure that people will be paying attention to. With that being the case, the market looks as if it is ready to continue to see a lot of volatility, and I think that given enough time we probably take off to the upside as demand will continue to be a major pick up. After all, the temperatures in the northern hemisphere should continue to drive lower, and therefore drive more demand.

NATGAS Video 22.10.20

The natural gas markets have quite a bit of support underneath near the $2.80 level, so I think that pullbacks will probably be bought into. After that, the question then becomes how much higher can we go? The initial target for me is going to be the $3.10 level, but I believe that we are probably looking more realistically at a move to the $3.50 level before the winter is over. During this time a year, I have no interest whatsoever in trying to short the market, so I look at pullbacks as potential buying opportunities.

This will be especially true if we do break down below the $2.80 level and start looking at the 50 day EMA which is currently just below the $2.60 level. At this point, I continue to think that natural gas is a market that you buy on dips and simply let it rise to take your profits occasionally. Remember, natural gas is highly sensitive to the short-term weather outlook as well.

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