Natural Gas Price Forecast – Natural Gas Markets Form Bullish CandleNatural gas markets formed a bullish candlestick after the initial pullback on Thursday due to a stronger than anticipated inventory figure. At this point, the market is likely to continue to see a lot of volatility.
Natural gas markets initially fell during trading on Thursday but the inventory number coming out as much more stringent than anticipated help the market return to profitability later in the day. We are forming a bit of a bullish candlestick and it does suggest that perhaps we are ready to go higher. Ultimately, I think that this is a marketplace that is trying to form a bottom again. Above, I anticipate the target to be the $2.40 level.
NATGAS Video 20.12.19
Underneath, the $2.20 level should continue to be massive support, and it’s not until we break down below there that I become concerned about the overall marketplace. If we were to break down below the $2.20 level, then it’s likely that we could go down to the $2.00 level next. Don’t be wrong, this has been an extraordinarily bearish winter, but at the end of the day colder temperatures will continue to be a major issue when it comes to where price goes next. There should be a massive spike higher at one point or another during the wintertime. After that, we will go back to selling natural gas yet again.
One of the main drivers of negativity in the marketplace this year has been the fact that the Americans drilled 17% more in 2019 than they did in 2018, and that of course has had a major supply overhang cause major problems. I think that we could go higher rather quickly, but this will be a short-term buying opportunity more than anything else. I have no interest in shorting until we break down below the $2.20 level, and even then, it’s going to be difficult.
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