Natural Gas Price Forecast – Gapped Lower as Hurricane Blows ByThe natural gas markets have gapped lower during the trading session on Wednesday, as we have broken down towards the $2.65 level.
Natural gas markets have gapped lower to kick off the trading session on Wednesday as we have gotten past the hurricane in the Gulf of Mexico yet again. Having said that, there is still plenty of support underneath and I think that it is only a matter of time before we get buyers again. After all, the market is going to be looking at the natural gas markets through the prism of colder temperatures in the next few months, so I do think that it is only a matter of time before we get an opportunity to get long again.
NATGAS Video 15.10.20
Currently, the 50 day EMA is sitting at the $2.50 level, which of course is a psychologically important figure. I think at this point time, it is only a matter of time before we pull back and then find buyers yet again. In fact, we are already starting to see a little bit of a bounce near the $2.60 level. Given enough time, the $3.00 level above is a large, round, psychologically significant figure that will continue to cause issues. I do think that the market is very attracted to that level, and as we are trading the November contract people are starting to look at the idea of picking up value.
75% of retail CFD investors lose money
The next couple of months should feature cold weather that people will use to drive natural gas higher as is the cyclical trade. However, by the time we get into the early part of next year, we will be trading spring contracts, which of course will drive this pair right back down. In the short term, I like buying short-term pullbacks.
For a look at all of today’s economic events, check out our economic calendar.