Advertisement
Advertisement

Natural Gas Price Forecast – Natural Gas Continue to Find Support

By:
Christopher Lewis
Updated: Dec 16, 2020, 17:26 UTC

Natural gas markets fell a bit during the trading session on Wednesday but continues to find support near the $2.60 level.

Natural Gas Price Forecast – Natural Gas Continue to Find Support

In this article:

Natural gas markets initially tried to rally during the trading session but then turned around falling yet again. However, the $2.60 level continues to be very supportive and it should be noted that we are in the midst of a big storm hitting the northeastern part of the United States, which is dumping snow and cold weather in places like New York, Boston, Philadelphia, and the like. With that being the case, I think that it does make sense that we would see a little bit of levitation in this market, due to the fact that the demand of course will be rising in the short term. That being said, it is the January contract that we are trading, so the upside is somewhat limited as far as time is concerned.

NATGAS Video 17.12.20

Ultimately, I think the 50 day EMA above the $2.75 level will be a bit of resistance, but if we can break above there, then the 3.00$ level would more than likely be targeted, as it could send this market right back into the selling zone again, as it is a large, round, psychologically significant figure, and the scene of rather important selling previously. With that being said, I think that buying on the dips continues to work for the short term, but longer-term there so much better trade to fade this market on signs of exhaustion.

All things being equal, this is a short-term buying opportunity followed by longer-term shorting opportunity as the cyclicality of this market will come back into play. With this, I do believe that it is only a matter of time before we make a bigger move.

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.

Did you find this article useful?

Advertisement