Natural Gas Price Forecast – Natural Gas Markets Bounce From GapThe natural gas markets rallied a bit on Tuesday as we have broken above the top of the neutral candlestick from the previous session.
Natural gas markets rallied significantly during the trading session on Tuesday, breaking the top of the neutral candlestick from the previous session. We have filled the gap, and furthermore test that the 50 day EMA so it is likely that this is the real deal. Filling the gap is something that would attract a lot of attention, and therefore it makes sense that we would see a bounce from here. Because of this, I think that we have a nice buying opportunity.
NATGAS Video 11.11.20
Furthermore, you need to keep in mind that the market has clearly turned around and also has a significant amount of demand underneath due to the fact that we will get colder temperatures in the United States. Yes, the market is pricing and warmer temperatures in the short term, but that is a short-term pullback. Ultimately, the market could go looking towards the $3.40 level, perhaps breaking above there as well. Ultimately, the market then could go much higher but in the short term I am focusing on a short-term move to the $3.20 level.
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On the other hand, if we break down below the $2.80 level, and by extension the 50 day EMA, the market is likely to go down towards the $2.60 level. Ultimately, this is a market that should continue to see a lot of volatility, but I still favor the upside as we are trading winter contracts as the market continues to see a lot of demand coming out of the northern hemisphere in general.
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