Natural Gas Price Forecast – Continue to Fall On Warmer Temperatures

Natural gas markets have broken down a bit during the trading session on Thursday, breaking below the $2.60 level based upon warmer than anticipated temperatures towards the end of the month. However, the reality is that we are heading towards the coldest time of year and there will be more demand. Because of this, I am waiting for buying opportunities and we just do not quite have one yet. That being said, I see a couple of different areas underneath that will be interesting to pay attention to, but I should point out that I will be making a buying decision based upon a daily close, not a specific price.

NATGAS Video 20.11.20

Looking at the $2.40 level, I see a lot of previous support from not only a gap and a hammer, but also the fact that the 200 day EMA is currently sitting in that area as well. That acts as a natural magnet for longer-term traders, so therefore I think there could be a bit of upward pressure in that area. The size of the candlestick is somewhat telling, and it suggests that we will in fact continue to go lower for the short term. That being the case, I look at this as a possible value play given enough time. In this situation, the best thing I can tell you to do is simply sit on the sidelines and wait for your opportunity. You do not have it yet, but I will check this at the end of every day.

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