Natural Gas Price Forecast – Natural Gas Into The Week PositivelyThe natural gas markets have rallied a bit during the trading session on Friday as we continue to see the knock on effect from the inventory figure on Thursday.
Natural gas markets have rallied a bit during the trading session on Friday, breaking above the top of the hammer from the previous session. That being said, the market is likely to see a lot of choppiness, due to the fact that although temperatures are dropping in the United States there had been a 17% increase in drilling this past year. The $2.20 level underneath is massive support, and an area that I think is starting to offer a bit of a “floor” in the market. If we were to break down below there, then it’s likely that the market will go looking towards the $2.00 underneath and it would of course be very catastrophic.
NATGAS Video 23.12.19
The $2.40 level above is the next major barrier and if we can break above there then the market is likely to move in $0.10 increments going forward. I think that the market has a lot of work to do but after the Thursday surprise bullish inventory figure, we may be getting close to that winter pop that we typically see. What frankly, this has been a disaster for natural gas this winter, but it looks as if we are trying to form some type of floor just below. To the upside, I believe that the $3.00 level will now be massive resistance and difficult to break through, and as the winter has gone it looks very unlikely. If it does, the market will then go looking towards the $3.25 level. All things being equal I like buying natural gas here but I also recognize that the upside is somewhat limited in the short term.
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