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Natural Gas Price Forecast – Continue to Look Extraordinarily Bullish

By:
Christopher Lewis
Published: Oct 30, 2020, 15:43 UTC

Natural gas markets simply have been relentless over the last several days and look like they are ready to continue going even higher.

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Natural gas markets have pulled back initially during the trading session on Friday, but then shot towards the $3.40 level rather quickly. This is an area that is fresh territory for the markets, and therefore looks like we will probably continue to go higher. However, if you been watching my analysis here at FX Empire, you know that I prefer to see some type of pullback because quite frankly we exploded to the upside on a major gap and have not retested the bottom of it.

NATGAS Video 02.11.20

I suspect that as we are trading the January contract, we probably have about two more months’ worth of bullish pressure. With that being the case, I have no interest whatsoever in shorting this market, because not only do we have cold temperatures in the United States and Europe, but we also have a lot of hurricane noise and fears in the Gulf of Mexico this year, disrupting supply. Given enough time, I do think that this market turned right back around and fall through the floor, but this is a cyclical trade that tends do fairly well every year. Sometimes it works simply because it is expected to, a bit of a self-fulfilling prophecy.

I would be all over a drop down to the $2.80 level, but quite frankly I do not know if are going to get it now. Looking for dips to buy in order to pick up little bits and pieces of value probably the only way you can go from here.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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