Natural Gas Price Forecast – Natural Gas Markets ChoppyNatural gas markets gapped lower to kick off the trading session on Friday, and then went back and forth as we are banging on the door of the $3.00 level.
Natural gas markets have gone back and forth during the trading session after initially gapping lower on Friday, testing the $2.80 level for support, and the $2.90 level as resistance. It looks as if we are ready to go and attacking the $3.00 level given enough time, so therefore the uptrend is very much intact. I believe that pullbacks will continue to offer buying opportunities, especially as we are in the cycle way and seasonally bullish time of year, as we are trading the November contract. As demand increases, price rises, or at least that is the way it is supposed to work.
NATGAS Video 28.09.20
There is a gap underneath that extends all the way down to roughly $2.40 that needs to be paid attention to, so I do think that it is almost impossible to short this market at this point in time. Do not get me wrong, I know that there will be plenty of supply out there given enough time, but this time a year is almost always bullish for the market and it is worth noting that the natural gas markets rallied in the face of a very strong US dollar, something that most other commodities have not been able to do.
With all of that in mind, I am a “buy on the dips” type of trader and I think that if we can break above the $3.00 level, we will probably initially go looking towards the $3.20 level, and then possibly as high as $3.50 over the longer term. That being said, look for value and do not simply chase the trade.
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