Natural Gas Price Forecast – Natural Gas Continue to Talk BullishThe natural gas markets gapped a little bit lower during the trading session on Monday, but then turned around to break towards the $3.25 level.
Natural gas markets have pulled back a bit during the trading session initially at the open on Monday, but then turned around a break above the $3.25 level. At this point time, the market is likely to continue to pay attention to the gap underneath. Given enough time, there is likely going to be an opportunity to buy this market on short-term dips, perhaps extending all the way down to the $3.00 level underneath. Quite frankly, the market is likely to see value hunters coming back in as it is the time of year where we see natural gas demand pick up drastically.
NATGAS Video 27.10.20
The natural gas markets of course are highly driven by weather, so as the temperatures plunges in the United States, that should continue to drive demand higher. That being said, the market is likely to see a lot of choppiness in general, but clearly the upside is where we are looking to go over the longer term. Given enough time, I think that every time this market drops you have to be looking for value. We will not be shorting this market anytime soon, at least not until we start to look at the spring contracts which is a few months away. It is anticipated to be a colder than usual winter, and if that is going to be the case that should only drive natural gas even higher.
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The massive amount of bankruptcies in the United States of course have had a major influence as well. The $2.80 level should be a massive support level.
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