Natural Gas Price Forecast – Natural Gas Markets Rally AgainNatural gas markets look like they are finally starting to perk up again, as the $2.20 level has offered a significant amount of support. With that being the case, it’s very likely that we continue to see buyers come in based upon value.
Natural gas markets have shown signs of strengthening for the third day in a row, and now are clear of those wicks that had caused a bit of concern late last week. With that being the case, it looks as if the sellers are starting to get trapped and eventually that could spring the “Winter pop” that I’ve been looking for. The $2.20 level looks to be important, and as long as that’s going to be the case it’s likely that we will see buyers on dips in that general vicinity.
NATGAS Video 16.10.19
Ultimately, this market probably will try to return to the $2.70 level, but it may take some time to get there. What we need to see is some type of cold forecast in the United States to have people assuming there is going to be much more demand. That will eventually happen, and when it does it tends to be a very explosive move. Pullbacks at this point should continue to offer plenty of value, especially near the $2.20 level, which has been so stringently defended since we broke above there back in late August. Remember, we are trading the November contract and that tends to mean higher pricing. At this point, I still believe in buying pullbacks as natural gas should continue to find plenty of buyers at these extraordinarily low levels. This is a seasonal trade, so don’t get too buried into the trade with huge amounts of funds, but it is a way that I pad my account every year.
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