Natural Gas Price Forecast – Natural Gas Pull Back But Show Strength

Natural gas markets have turned around after initially falling during the trading session on Tuesday to reach down towards the $2.60 level. Ultimately, this is a market that I think eventually turns around and goes much higher. At this point in time, we have formed a couple of hammers, which of course is a bullish sign. Cold temperatures are starting to come back to the United States, so that should drive up the value of natural gas as the demand picks up. Ultimately, the 50 day EMA above will be tested as resistance, but I suspect that the real target will be closer to the $3.00 level. That of course is a large, round, psychologically significant figure, and an area where we have seen a lot of resistance.

NATGAS Video 16.12.20

On the other hand, if we were to turn around a break down below the $2.67 level, it is likely that we could go down to the $2.44 level near the 200 day EMA. That of course is a longer-term indicator that a lot of people will pay attention to. All things being equal, I think this is a market that continues to see a lot of volatility, and I do believe that there is “one last hurrah” left in the natural gas markets this winter. That being said, we are already trading the January contract, so it is only a matter of time before we flip over to the spring contracts which of course will feature a lot less in the way of demand and therefore I think that this last spike will eventually offer a nice selling opportunity.

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