Natural Gas Price Forecast – natural gas markets rally on Tuesday

The natural gas markets pulled back initially during the trading session on Tuesday, showing signs of $3.10 offering significant support as we had previously. At this point, it looks as if the market continues to bounce around between the $3.10 level on the bottom, and the $3.35 level on the top. I do believe that eventually we will see some type of breakdown, but not anytime soon. I believe that the $3.00 level would be “floor” of the market in general. If we were to turn around and break down below there, that would be a very negative sign indeed.

However, there is cold weather in the United States which should continue to keep this market somewhat afloat but keep an eye on the phrase “El Niño.” That is a weather phenomenon that brings a milder than usual winter to the United States, and that could drive down demand. If that ends up being the case, that could probably be one of the things that unwinds this market. However, until that is proven to be the case, one would have to assume that the overall bullish seasonality should continue in this market, but I think it might be a bit of a stretch to think that we are going to break above the $3.35 level anytime soon. In fact, I think this is a “slightly bullish” consolidation area, and should be bought and not sold, but of course I would look for short-term pullbacks to pick up the value.

NATGAS Video 24.10.18