Natural Gas Price Forecast – Natural gas markets roll overNatural gas markets rolled over during the trading session on Thursday as the inventory number in the United States was fairly bearish. That being said though, we are starting to see that move higher longer term, so it’s very likely that buyers will be waiting below.
Natural gas markets fell relatively hard during the session on Thursday as the inventory number in the United States came out much more bearish than anticipated. However, we are starting to enter the cyclically strong time of year for natural gas as it is used so prevalently in the United States and Europe to heat homes. With that in mind, I’m looking for buying opportunities in this pullback could be one. The $2.50 level should offer significant support, and most certainly the 50 day EMA will as well down near the $2.38 level.
NATGAS Video 20.09.19
I will be looking to buy a bounce when it occurs, which could be by the end of the trading session or early on Friday. Part of the noise that we are seeing is due to the noise in the petroleum markets after the drone strike, so there is a little bit of a “knock on effect” over here as well. Regardless though, we have seen a massive surge higher so for my money the trend has changed to the upside, and a couple of negative days doesn’t quite change that. One of the great things about trading natural gas is it is such a trending environment that quite often you put on a trade and closeout a couple of months later. Buying dips should continue to work, and therefore I remain bullish until we either break down below the 50 day EMA, or early January as it is when we normally start selling again.
Please let us know what you think in the comments below