Natural Gas Price Forecast – Natural Gas Slowing Down Near Big Figure

Natural gas markets have gone back and forth during the trading session on Thursday, as we continue to hang about the $3.00 level. Ultimately, this is a market that I think is trying to build a little bit of a base after bouncing from the bottom of the gap that has just been filled. That being said, I think that the market still goes higher given enough time and I look at this short-term pullback as a potential buying opportunity. The 50 day EMA has proven itself to be rather supportive, which it is a longer-term technical indicator that a lot of traders will pay attention to anyway. That matching up with the $3.00 level course makes quite a bit of sense.

NATGAS Video 13.11.20

To the upside, I believe that the 3.20$ level will be a target, followed by the $3.40 level. I believe at this point in time we continue to look at pullbacks as potential buying opportunities as the natural gas demand over the next couple of months should continue to pick up. We are currently trading the December front contract, which of course is a high demand months. As temperatures dip in the United States we should continue to see upward pressure but the initial move was exacerbated by the fact that we had several hurricanes hit the Gulf of Mexico in a short amount of time, bringing fears of a supply disruption into the psyche of traders.

Now that we are past that, we start to focus on demand as well, and as temperatures plunge, price should continue to go higher.

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