Natural Gas Price Forecast – Natural Gas Markets Drift Lower

Natural gas markets broke down a bit during the trading session on Monday, as we continue to see a lot of overhang due to the massive drilling done in the United States, as although we have broken down a bit of the supply, price hasn’t caught up. We are in the bullish time of year, so it is a bit surprising that we can’t continue to go higher but at this point I think it’s only a matter of time before we get some type of surge higher due to the colder temperatures in the United States.

NATGAS Video 27.11.19

Looking at this chart, I now think that the market is going to be attracted to the gap underneath, near the $2.40 level. At this point, I suspect that there will be a lot of buyers in that area, and it’s likely going to continue to attract a certain amount of attention. Beyond that, there is the possibility of an uptrend line slicing through that area, and therefore I would suspect that will continue to be an area that’s worth paying attention to. At this point, we need some type of cold weather forecast or report to get buyers the jump back in and take advantage of the cyclical trade. Quite frankly, if the gap underneath was to be broken to the downside, it would wipe out any semblance or hint of bullish winter trading. With that, the market could offer value, but it’s going to be lower than where we are right now.

Please let us know what you think in the comments below