Natural Gas Price Forecast – Natural Gas Continue to Look BullishNatural gas markets continue to look very bullish, as we initially fell but then found buyers yet again on Tuesday.
Natural gas markets have fallen a bit during the trading session on Tuesday, as we have seen a bit of profit-taking. That being said, we reached down to fill the gap from the Monday open, and have turned around to show signs of life again. Ultimately, this is a market that I think will continue to find buyers, based upon the hurricane fears and of course the fact that we are trading the November front contract. This means that there should be more demand, and therefore it is difficult to imagine a scenario where natural gas falls for a significant amount of time. That being said, it does not have to go straight up in the air, so I like buying dips and simply collecting profits as they occur.
NATGAS Video 14.10.20
To the upside, I believe that the $3.00 level will continue to be important, as it is a large, round, psychologically significant figure, and of course will attract a lot of attention. With that being said, the market is likely to continue to struggle to get above there, but once it does it will be a bit of a “beach ball underwater scenario”, meaning that we will probably shoot up in the air rather quickly. Because of this, I am not interested in shorting this market anytime soon, at least not until we start to trade the spring contracts. That is several months away, so at this point I am a buyer only. Do not get me wrong, I do not necessarily say we cannot pullback, but look at that as potential value this time of year.
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