FXEMPIRE
All

Natural Gas Price Forecast – Natural Gas Markets Gap Higher

Natural gas markets gapped higher during the open on Thursday as we continue to see a lot of volatility in this market. That makes sense, because quite frankly we have a lot of crosswinds going on at the same time.
Christopher Lewis
Natural gas daily chart, November 15, 2019

Natural gas markets have gapped to kick off the trading session on Thursday, showing signs of strength yet again. That being said, there is a gap above that will probably offer quite a bit of resistance near the $2.75 level. Ultimately, this is a market that is cyclically driven as we are getting very cold temperatures in the United States, driving up demand. However, there was a massive amount of drilling done over the last year, so therefore supply is a bit strong still. With that, there is a lot of inventory to work through, but I do think that we are going to do so relatively soon. Quite frankly, winter has arrived early in North America, so it’s only a matter of time before the heating demand catches up with supply, albeit temporarily.

NATGAS Video 15.11.19

To the upside, if we can break above the gap, I think that the market then goes looking towards the recent highs and then the $3.00 level after that. That’s an area that I would anticipate seeing a lot of interest at, and therefore I would be very interested in seeing how it reacts. If we can break above the $3.00 level, and I think we will eventually, the market then will go looking towards the $3.25 level.

To the downside the 200 day EMA should offer support, just as the 50 day EMA should. It’s the wrong time of year to start shorting natural gas anyway, so at this point I think these pullbacks should continue to offer value.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US