Natural Gas Price Forecast – Natural Gas Markets Showing Resiliency

Natural gas markets initially fell during the trading session on Tuesday but turned around to show signs of life again. The market continues to be based upon whether reports coming out of the United States, and now we are starting to finally get a bit of cold weather that could help natural gas continue to rally. The demand of course will pick up in colder temperatures, but at this point we have to pay attention to the fact that the Americans drilled an extra 17% last year as opposed to the previous one, so that is certainly something worth paying attention to. Ultimately, this is something that traders need to be aware of.

NATGAS Video 18.12.19

With inventory numbers coming out weekly, one feels that it is only a matter of time before the inventory numbers work in favor of the buyers. Ultimately, this is a market that should continue to see the $2.40 level continue to offer resistance, and if that level can be broken it’s likely that we could go looking towards the $2.50 level after that. I do recognize that market is likely to move and $0.10 increments, but we do eventually during the wintertime get a massive spike higher. That’s almost universal, so I continue to look at this is a market that simply cannot be sold, because quite frankly at any moment we could get a massively bullish report that sends the market through the roof. Granted, the easiest trade is to simply short this market towards the end of January but doing it at these low levels would be extraordinarily difficult.

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