Natural Gas Price Forecast – Natural gas markets continue to rallyThe natural gas markets gapped higher after the drone attract in the Saudi kingdom, as energy markets have gone wild. Ultimately, this is a market that is getting ready to rally based upon the time of year, so after this attack I don’t think we’re going to get that pullback I had been waiting for.
Natural gas markets have gapped higher after the drone attract in the Saudi kingdom, ultimately showing signs of life again. Ultimately, this is a market that has a cyclical aspect to it that is about to push prices higher. As the United States and Europe enter the colder months of the year, we start to see more demand for natural gas. Beyond that, it has been rather hot in the United States, so that also drives up demand for natural gas to run air conditioning.
NATGAS Video 17.09.19
All things being equal I think that the energy markets are going to be supported based upon the threat of drone attacks, and who knows what else. At this point, it’s very likely that the market is going to continue to find buyers on dips, and at this point the 200 day EMA is underneath, which of course is supportive for a longer-term trend. I had been hoping for a bit of a pullback, reaching down towards the 50 day EMA, but we did not get that due to this unforeseen circumstance, so now it looks like we are ready to go much higher.
At this point, it’s likely that the market will go looking towards the $3.00 level above, which of course is a large, round, psychologically significant figure and will attract a lot of attention. All things being equal, this is a market that should continue to go even higher than that based upon the cyclical nature of the Winter pop, but we will get the occasional pullback.
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