Natural Gas Price Forecast – natural gas markets explode to the upside on FridayNatural gas markets rally significantly during the Friday trading session, as colder than expected temperatures are coming to America. That being the case, it’s likely that the buyers will continue to come back into this market but buying appear is essentially “chasing the trade.”
Natural gas markets rallied again during the day on Friday, touching the $3.80 level. The $3.50 level underneath is supportive, and I think that a pullback from there could fill the gap, and quite frankly that’s what I’ve been waiting on. Natural gas markets are obviously in a very bullish trend, you can’t chase the trade, it’s the greatest way to start losing money. The $3.25 level underneath is the bottom of the gap, and that should be massively supportive. Looking at this chart, it’s likely that we will continue to be buyers on dips as it offers plenty of value.
NATGAS Video 12.11.18
The seasonality of this market is very bullish anyway, so it makes sense that we have plenty of reasons to go long. In fact, it’s not until we break down below the $3.25 level that I would be a seller. A breakdown below that level would send this market down to the $2.80 level rather quickly. The $4.00 level above is massive resistance, and therefore I think it would make sense to see a pullback from there if we do continue to go higher in the short term.
Unfortunately, if you haven’t gotten an opportunity to go long you should probably be sitting on your hands right now, because it is going to be very dangerous to put money to work at these high levels. You need to be able to hang on to the trade and considering that we could see a $0.20 drop from here, patients will be the better part of virtue.