Natural Gas Price Forecast – Natural Gas Continues to Show SupportNatural gas markets initially fell during the trading session on Wednesday but turned around to form a bit of a hammer as the 50 day EMA comes into play.
Natural gas markets have fallen a bit during the trading session on Wednesday, as we reached below the 50 day EMA only to turn around and rally again. By doing so, we have formed a bit of a hammer and it does look like the market is ready to try to continue going higher. The natural gas markets of course are in the busiest time of year as far as demand is concerned, so it does make sense that we would see a lot of resiliency in the market.
NATGAS Video 26.11.20
If we break above the highs of the day, then it is likely that the market will go looking to fill the gap above at the $3.00 level, extending to about $3.07 above there. After that, then we are starting to look at the possibility of $3.20, and then eventually $3.40 if we get a significant move. Keep in mind that this market is likely to continue to move on the most recent weather report, so it does quite often get erratic. That being said, if you can keep your position size small, you can look at it from more of a longer-term perspective. The next month or two should be rather bullish, but once we switch to the spring contracts, and it should be noted that we are currently trading the January contract, then you start to see a selloff.
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At this point in time, we are still looking at a heavy demand season ahead of us, and therefore one would think that there should still be significant amount of demand out there.
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