Natural Gas Price Forecast – natural gas markets continue to grind

Natural gas markets continue to go sideways as we are trying to digest the gains that we had recently seen. The explosive move to the upside was very important, as it was in the usual manner at the end of the year. The colder temperatures in the United States will continue to drive demand up in theory, and typically this time of year we will see a lot of buying pressure. Now that we are well above the $3.00 level, the market is most certainly in a bullish section, but I think we are probably better off look at short-term pullbacks to pick up a bit of value. That value will present itself occasionally, and I look at large figures to start buying.

The $3.20 level is the beginning of significant support down to the $3.15 level below, and I think that any dip towards that area is probably short term buying opportunity. Overall though, the market continues to be bullish, but look for value as we had if reached very extreme highs. I think that colder temperatures coming will continue to be a focus so obviously you will have to pay attention to the weather reports. Beyond that, we also pay attention to inventory figures, which have been all over the place. There was an initial shot higher after the hurricane reports, but that is in our rearview mirror and seems to not be affecting price at all. I think that the $3.35 level will take a lot of effort to get beyond to the upside.

NATGAS Video 18.10.18