Natural Gas Price Forecast – Natural Gas Quiet on ThanksgivingNatural gas markets gapped lower to kick off the Thursday session but It was Thanksgiving Day in the United States, so liquidity was below normal levels.
Natural gas markets have pulled back a bit during the trading session on Thursday, but it should be remembered that it was Thanksgiving Day in the United States so that of course works against liquidity. Ultimately, the 3.00$ level above is a small barrier, as there is a gap above it. At this point, if we do break above the gap is likely that the market can continue to go to the $3.20 level, possibly even to the $3.40 level.
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To the downside, the 50 day EMA sits at the $2.84 level, and I think that it is likely to be support level underneath. Ultimately, this is a market is dealing with more demand this time of year, as the need for heating will continue to pick up. At this point, the market is likely to see higher prices over the next couple of months, at least until the warmer temperatures start to get factored in. Currently, we are trading the January contract, which of course is extremely high demand. Because of this, I think that we go higher and of course the market is likely to see more demand coming into the price factoring.
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Ultimately, I think we continue to buy dips and we continue to try to take advantage of what is a very strong trend. To the downside, the $2.65 level is massive support, and of course the 200 day EMA underneath there will be. Ultimately, this is a market that I think goes higher for a little while, before we see sellers come back in.
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