Natural Gas Price Forecast – Natural Gas Markets Pull Back

Christopher Lewis
·2-min read

Natural gas markets have pulled back a bit during the trading session on Thursday, pulling back from the $3.30 level. Looking at this market, we have broken below the $3.20 level during the day, but there is still plenty of real estate the cover underneath that we will need to pay attention to. Quite frankly, this is a market that gapped well above the $3.00 level, and I think we need to come back and test at the very least that level. Yes, I am bullish natural gas this time of year, but you should keep in mind that the front contract that we are trading is already the December contract.

NATGAS Video 30.10.20

Having said all of that, there should be plenty demand for natural gas as temperatures plummet in the northern hemisphere. We have seen a major move higher, but clearly there is no reason to short this market. I think the 50 day EMA which is approaching the $2.80 level should offer significant support. As long as we can stay above there, then we are still very much in an uptrend. In other words, we have plenty of space underneath that we could fall and still be very strong in general.

This is an uptrend that I have no interest in fighting, especially this time of year. Because of this, the market probably will find reasons to go higher sooner or later, so I am looking for support of daily candlesticks after a fall in order to take advantage of value. Again, I have no interest in shorting and I do believe that natural gas will probably try to go looking towards the $3.50 region.

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This article was originally posted on FX Empire

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