Natural Gas Price Forecast – Natural gas continues to grind higher

The natural gas markets rose during the trading session again on Monday, reaching towards the vital 200 day EMA. It looks as if the bottoming pattern continues.
Christopher Lewis
Natural gas daily chart, September 10, 2019

Natural gas markets rallied a bit during the trading session on Monday, reaching towards the 200 day EMA. By doing so, it shows that the market is reaching a crucial point as the 200 day EMA is quite often used as a longer-term moving average to determine trend. If that is the case, then a longer-term trader is going to stand up and take notice at this point. Ultimately, we could be witnessing the beginning of the “Winter pop”, but I think it’s still a little bit early for that to happen. With that being the case, it’s very likely that we are going to continue to see a bouts of volatility, so be cautious. I think at this point what we are going to see is a pullback and then eventually a rally that last into the cold months.

NATGAS Video 10.09.19

All things being equal I think that the market will ultimately try to turn around for the cold weather, but I also recognize that the overhead resistance will be massive. With that being the case I think that we are likely to see a lot of choppy trading, which is quite typical at the end of a downtrend. This will kick off a significant move to the upside for the short term, but keep in mind sometime around January we start to focus on the Spring contracts again, and then this think will collapse. Long-term is still bleak for natural gas but we always have that busy season when it gets cold in the United States and Europe. With that being the case I suspect we are about to start trading for it.

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