Natural Gas Price Forecast – Natural Gas Continues Over Big Figure

Natural gas markets have gone back and forth during the trading session on Thursday, forming yet another neutral looking candlestick as it did on Wednesday. Because of this, it looks like we are going to pay close attention to the $3.00 level, an area that obviously has a certain amount of psychological significance to it. There is still room to go to the downside though, as we have not filled the gap. In fact, we could drop all the way down to the $2.80 level and still be very bullish. Nonetheless, if we break above the top of the candlestick for both Wednesday and Thursday, at that point I will be putting on small positions for long trades.

NATGAS Video 06.11.20

I have no interest in shorting natural gas, it is the wrong time of year to do so. There will be more demand due to the colder temperatures in the United States and of course this cyclical trade has been somewhat reliable for several years. We are still trading the winter months, so it is not until we start looking at the spring contracts that I would be interested in selling. Natural gas is far too cyclical to start trying to fade winter. Yes, there will be times when warmer temperatures come, but that is short-lived and is a knee-jerk reaction more than anything else.

Nonetheless, longer-term this market tends to follow the weather patterns and the seasons, and this is a very bullish one. The US dollar shrinking has no real effect on this market, unlike crude oil so it is not normally a correlation that I look for.