Natural Gas Price Forecast – natural gas markets find it exhaust and aboveNatural gas markets initially tried to rally during the trading session on Tuesday but found the $3.35 level to be a bit too resistive. We have gotten overstretched at this point, and quite frankly a pullback makes complete sense.
Natural gas markets initially tried to rally during the trading session on Tuesday but found the $3.35 level to be a bit too far. At this point, the market is most certainly overbought, but I think at this point it’s likely that we are simply going to look for a pullback. The early action in the United States was pretty negative, but I still see the $3.20 level as important, as well as the $3.10 level after that. I do like buying pullbacks, and I believe that given enough time we will see opportunities to go long. After all, this is a time of year that it’s historically bullish for natural gas as colder temperatures arrive at North America. For those of you trading the CFD market, you may not be aware that the futures market is trading the November month, which of course is cold.
If we were to break down below the $3.20 level, I think at that point we probably go down to the $3.10 level next. That’s an area that is even more supportive, and that of course is followed by the $3.00 level. Either way, at this point I have no interest in shorting this market although we are most certainly overbought, and I don’t think buying here is necessarily prudent either. It is possible that the $3.25 level offered short-term support, but at this point and these high levels you should be looking for value, not momentum anymore as we have come so far in such a short amount of time.