Natural Gas Price Forecast – Natural Gas Markets Continue to Drift Lower

Natural gas markets have fallen again during the day on Tuesday as warmer than anticipated temperatures continue to be the headline in the United States, driving down demand for natural gas in a huge way. While the European Union has major issues such as Announced by the Dutch cabinet not been able to guarantee that businesses will have natural gas over the winter, the United States is completely all wash in natural gas. With that in mind, you need to keep in the back of your head that the contract that you are trading is based upon American natural gas, and not around the world. In other words, you need to be aware of the weather situation in America to make decent fundamental trades.

NATGAS Video 15.12.21

It is worth noting that we have gapped below the 200 day EMA, turned around to fill that gap on Monday, and then have since fallen. I think this is probably what we will be paying the most attention to going forward, at least from a technical analysis standpoint. Based upon the massive triangle that I have on the chart, the projected move is down to the $3.00 level, which is an area that has been a major magnet for price in the past. With that being said, I believe that we get there over the next couple of weeks, especially as mild temperatures in the United States will work against any type of pricing power, and of course the fact that we are already pricing in January gas, meaning that temperatures will start to rise shortly thereafter as well.

For a look at all of today’s economic events, check out our economic calendar.