Natural Gas Price Forecast – Natural gas markets rally significantlyNatural gas markets initially pulled back during the trading session on Friday but found enough support below at the $2.25 level again to rally towards the 50 day EMA above.
Natural gas markets have initially pulled back during the trading session on Friday, reaching down towards the $2.25 level. That’s an area that has been supported over the last couple of days and did not disappoint on Friday. By turning back around and rallying the way it has, a bit of a hammer has formed and the market is currently trading at the 50 day EMA. At this point, we are probably going to see the beginning of the longer-term uptrend. This is the time of year where you start to look for a larger pop higher as colder temperatures will be coming to the European Union and North America.
NATGAS Video 07.10.19
The $2.25 level very well could be the bottom of the market for the year, and could send this market to the $2.50 level, the $2.75 level, and then the $3.00 level. Longer-term, we could probably go higher but it doesn’t necessarily mean that will happen in a straight line. I like buying pullbacks, and I believe that we could go as high as $3.50 between now and the second week of January. With this, if you have the ability to buy CFD contracts instead of futures contracts, you will have the ability to hang onto that trade for much larger move. It also allows you to take out a smaller position, which is what I would suggest that this point, adding to it on pullbacks that offer a bit of value. I have no interest in selling natural gas, which of course Me on the sidelines all of last week.
Please let us know what you think in the comments below