Natural Gas Price Forecast – Natural Gas Markets Gap Higher

Natural gas markets gapped higher to kick off the week, breaking above the resistance at the $2.75 level that I have been talking about. Obviously, this is a very bullish sign.
Christopher Lewis
Natural gas daily chart, November 05, 2019

Natural gas markets have gapped higher to kick off the week, as we continue to see a lot of bullish pressure due to the cyclicality of the market, and the fact that colder temperatures are coming to the United States. With that being the case, the market is very likely to continue going higher, and therefore I like the idea of buying pullbacks. In fact, this cyclical trade quite often runs until mid-January, so this could go quite a bit further if the temperatures in the United States continue to fall.

NATGAS Video 05.11.19

Short-term pullbacks will probably find plenty of support at the gap, but even if we did break down below there it’s likely that the 200 day EMA at the $2.55 level will offer support as well. Below there, the 50 day EMA is at the $2.44 level, and that should of course offer support. However, it looks as if the 50 day EMA is ready to break above the 200 day EMA, forming a “golden cross.” At this point, the market looks as if it has bottom for the year, and as demand picks up in the United States, it should continue to drive this market much higher. I don’t have any interest in trying to short natural gas, as it should continue to be heavily in demand going for the next couple of months. At this point, it looks as if we are probably going to go looking towards the $3.00 level, which is of course a large, round, psychologically significant number, and then possibly the $3.25 level which is also technically important.

Please let us know what you think in the comments below

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
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.