Natural Gas Price Forecast – Natural Gas Markets Gapped Lower

Natural gas markets have gapped lower to kick off the week on Monday to show signs of weakness yet again. Ultimately, there is still plenty of support underneath though, and at this point in time it is likely that we will continue to see noisy behavior. After all, the time year is typically bullish for natural gas as demand picks up. Given enough time, is very likely that the buyers will step into this market, perhaps near the $2.60 level and most certainly near the 200 day EMA underneath. This time of year is going to continue to be bullish given enough time, because given enough time there should be demand picking up again.

NATGAS Video 17.11.20

That being said, you need to see some type of supportive candlestick in order to get involved, and we have plenty of time to think about the possibility of another leg higher. I think we will get that given enough time, but you need to be patient and wait for an opportunity to do so. Ultimately, if we can break above the gap lower on Monday, that would be an extraordinarily bullish sign and send this market much higher. I do not have any interest in shorting this market anytime soon, but once we start trading some of the springtime contracts, then I would be very interested in doing so. That being said, I think this is a market that continues to be noisy, so therefore you need to be very cautious. Given enough time, I do think we have reasons to go long but I will have to look at this on a day-to-day basis.

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