Natural Gas Price Forecast – Natural Gas Continues To Power Higher

Natural 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.
Christopher Lewis
Natural gas daily chart, November 06, 2019

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.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.