Natural Gas Price Forecast – Natural Gas Markets Continue Back And ForthNatural gas markets got inventory figures during the trading session on Thursday, with a reading of -73 billion, as opposed to the anticipated -76 billion. Looking at this chart, the market continues to struggle in general, but at this point it’s all about wheather.
Natural gas markets rallied a bit during the trading session on Thursday, but at this point it looks as if we continue to see a lot of resistance above. There was a gap lower that we are now trying to break above. At this point, the market looks as if it will continue to struggle, not only that gap causing resistance, but the previous uptrend line. By pulling back the way it has, it’s likely that the market will bounce around between here and the $2.20 level but if we were to break above the $2.40 level, the market is likely to continue going much higher.
NATGAS Video 13.12.19
Breaking down below the Monday hammer would of course be negative, perhaps sending the market down to the $2.00 level. This being the case, the market is going to continue to be very noisy, but if we get enough cold weather, it’s likely that this market will continue to go much higher. At this point, colder temperatures are starting to creep into the United States, but we still have so much in the way of supply that it’s going to take a lot of work to get through it. Expect a lot of choppy back and forth behavior, but at this point I would be very hesitant to sell the market simply because it is so cheap at this point and of course this is typically a high demand time of year. Ultimately, this is a market that is probably best to leave alone in the short term.
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