Natural Gas Price Forecast – Natural Gas Continues To Power HigherNatural gas markets have rallied again during the trading session on Tuesday, as we have most certainly broken out recently. That being the case, it’s very likely that the market will see buyers jump in in and following with the momentum.
Natural gas markets have rallied significantly during the trading session on Tuesday, as we are well above the $2.75 level. Gapping at the beginning of the week was the first sign that we were breaking out and ready to go much higher. Keep in mind that this time of year is almost always bullish for natural gas anyways as temperatures plummet in the United States. That suggests that we should continue to go higher, perhaps reaching towards the $3.00 level.
NATGAS Video 06.11.19
Looking at the market, the gap underneath should be thought of as a massive support level, and therefore filling the gap should be a nice opportunity. The 200 day EMA underneath is starting to turn higher, and it should attract a lot of attention. At this point, I believe that the market is more than likely going to continue to go much higher, and a break above the $3.00 level should then go looking towards the $3.20 level next. Ultimately, this is a market that is cyclically strong, and probably runs until the middle of January. At that point, the market is one that breaks apart and I would get aggressively short and as soon as I see a massive negative candle in the month of January. In the meantime, it looks as if buying short-term pullbacks will continue to be the way going forward, and therefore an opportunity to build up a larger core position. I have no interest in shorting this market anytime soon, as we have seen such a turnaround.
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