Natural Gas Price Forecast – Natural Gas Continue Choppy BehaviorNatural gas markets went back and forth on Thursday, as we continue to see a lot of volatility based upon the hurricane in the Gulf of Mexico.
The natural gas markets have been rather choppy as of late, trading in a range while we wait to see whether or not the hurricane disrupts production. At this point, there should still be plenty of upward pressure though, due to the fact that the demand for natural gas will more likely than not pick up as we head into the end of the year. After all, it is winter in the northern hemisphere, and this of course will have people in Europe and North America buying, using, and consuming more natural gas for heating.
NATGAS Video 09.10.20
However, the market has gone back and forth over the last couple of sessions, with the 50 day EMA underneath offering a bit of support near the $2.45 level. To the upside, we have seen the $2.70 level offer resistance this week, but I do think that the overall attitude of the market looks to be much more bullish than bearish. Even if we break down below the $2.40 level, I think at this point there is a certain amount of interest at the $2.30 level, followed by the $2.00 level where the 200 day EMA is sitting. This of course is a very bullish indicator that a lot of longer-term traders will play.
All things being equal, I do think that the market will continue to see a lot of noisy behavior, but with more of an upward tilt going into the new year. Because of this, I have no interest in shorting and I will look at short-term pullbacks as potential buying opportunities. As far as selling is concerned, I probably will not be doing so until January when we start to trade spring contracts.
For a look at all of today’s economic events, check out our economic calendar.