Natural Gas Price Forecast – natural gas markets explode to the upside on Monday

Natural gas markets broke higher during the trading session on Monday, breaking towards the $3.30 level. That is a large, round, psychologically significant number that should continue to attract people, so it’s not a huge surprise that we found a bit of trouble there.
Christopher Lewis
Natural gas daily chart, October 09, 2018

Natural gas markets have broken higher during the trading session on Monday to kick off the week, as we continue to see a significant amount of bullish pressure in this market. The natural gas markets have broken to a fresh, new high yet again, and quite frankly at this point it’s a very difficult market to jump into, because it has been so bullish, but hasn’t given us much of a chance to pick up any value. Nevertheless, I am certainly not interested in shorting this market as the bullish pressure has been so strong. I look at pullbacks as a nice buying opportunity, as we have seen so much in the way of resiliency.

Looking at this market, the $3.10 level is obviously supported, but I also think that the $3.20 level as well. In general, I believe that the market continues to rally into the cold months, and it should be noticed that the futures market is trading the November contract, something that cannot be overlooked. As the United States gets colder, there will be more demand for natural gas, so it makes sense that the price goes higher. However, by the time we get the January, we will be trading spring contracts, and that is typically the end of the high season for natural gas. Overall though, I think that short-term trading will continue to dictate what happens next in this market as longer-term moves are difficult to hang onto at times.

NATGAS Video 09.10.18

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers