Natural Gas Price Forecast – Natural Gas Positive Again on Friday

Natural gas markets have pulled back a bit during the trading session on Friday to break above the $2.60 level. At this point, it looks as if we are trying to recover a bit, and it is worth noting that the market has bounced from the 200 day EMA. That is a longer-term technical analysis indicator that a lot of people pay attention to, but it also lines up with the $2.40 level as an area that has been supportive more than once in the past. I think at the very least we are looking at the 50 day EMA as being a potential target above. That currently sits at the $2.75 level, but I think we could go even as high as the $3.00 level. Ultimately, this is a market that will eventually find signs of exhaustion that you can sure, but in the short term it looks like we are ready to go higher.

NATGAS Video 14.12.20

On the other hand, if we were to turn around a break down below the $2.40 level, it is likely that we could go to the $2.26 level, possibly even the $2.00 level. I do not expect that to happen though, at least not yet. I suspect that the cyclical trade will kick back off for the next several weeks, and then once we get towards the highs again there will be a massive shorting opportunity as we start trading spring contracts. Until then, I think you have to play the volatility and right now the volatility looks like it is leaning towards the upside.

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