Natural Gas Price Forecast – natural gas markets continue to march higher

Natural gas markets broke higher during trading on Wednesday, slicing through the $3.20 level as the ADP employment number gave a bit of a boost for the demand argument. Beyond that, the seasonality of course is helping as well.
Christopher Lewis
Natural gas daily chart, October 04, 2018

Natural gas markets have broken out again during the trading session on Wednesday, reaching above the $3.20 level and stretching towards the $3.25 level as I record this video. I believe that the market is going to continue to grind higher, but if you are not already long of this contract, you have no business buying appear. A pull back to the $3.20 level with some type of bounce or supportive candle could be a nice buying opportunity. A break down below there find support all the way down to the $3.15 level, so at this point I think you should be looking for value as it shows itself. Ultimately, this is a market that is bullish between now and the end of the year, so I think at this point it’s only a matter time before you get the opportunity to go long.

Keep in mind that we get weekly inventory numbers that will throw this market around, so look for pullbacks as an opportunity. I think that the $3.20 level, the $3.15 level, and the $3.10 level underneath should offer opportunity. At this point, I have no interest in shorting this market as although I think we are a bit stretched at this juncture, I think it’s obvious that the bullish pressure remains. We never want to go against a massive move like this, so simply being patient enough to take advantage of it is the biggest challenge that most traders will phase. Don’t ever try to pick the top.

NATGAS Video 04.10.18

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