Natural Gas Price Forecast – Natural Gas Markets Show Strength AgainNatural gas markets initially drifted lower on Wednesday, but then turned around to show signs of strength again.It looks very likely to continue going higher.
Natural gas markets initially pulled back a bit during the trading session on Wednesday, but then turned around to show signs of life again. Because of this, if the market breaks above the $3.00 level, that could give the “all clear” for return towards bullish pressure. After all, we have just filled the gap that a lot of people will have been paying attention to. If that is the case, the idea is that in theory we should see buyers to pick this market up and send it back to the upside. After all, you have to keep in mind that the demand for natural gas will be stronger this time a year, as it is colder in the northern hemisphere.
NATGAS Video 12.11.20
We have had a couple of scares when it comes to the Gulf of Mexico and hurricanes, so that has driven price artificially high, but we are still in a bullish uptrend. Now that we have filled the gap it is a continuation of what we have been seen for some time, so therefore it is likely that we could go as high as $3.40 if we are patient enough. Breaking above their opens up the possibility of a move to the $3.50 level, and possibly even further.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
If we were to turn around a break down below the $2.80 level, it opens up the possibility of a move down to $2.60 where I would expect to see even more support. The 200 day EMA is all the way down to the $2.40 level, and that would be a massive “floor in the market.”
For a look at all of today’s economic events, check out our economic calendar.