Natural Gas Price Forecast – Natural Gas Remains Sluggish

Natural gas markets have found themselves extraordinarily exhausted during the trading session on Wednesday as we tried to rally but gave back the gains. By doing so, the market looks very likely to continue to see a lot of back and forth, perhaps in an attempt to try to build a base. After all, even though we have warmer temperatures coming to the United States in the short term, it is only a matter of time before winter stepped back up and starts freezing everyone again. Quite frankly, it is cold right now.

NATGAS Video 19.11.20

With that being said, the demand for natural gas will continue to pick up as we go into the season, and it should be noted that we are in the midst of getting close to the rollover from December to January contract, which is typically a very bullish time of year. As long as winter is relatively cold, that should eventually drive demand up and then send this market higher over the longer term. This is the cyclical trade every year, at least until we start trading spring contracts. We are not near that yet, so I still have an upward bias even though the candlestick for the trading session on Wednesday was less than desirable.

Perhaps technical trading came into play near the 50 day EMA but I think if we can break above the highs of the Wednesday session, it is very likely that we will go towards the $2.96 level to fill the short term gap above that kicked this move off.

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