Natural Gas Price Forecast – Natural Gas Testing Major Technical LevelNatural gas markets have gone back and forth during the trading session on Wednesday, hovering just above a major moving average as we essentially tread water while temperatures in the United States plummet.
The natural gas markets have shown a lot of volatility during the trading session on Wednesday, as we continue to dance around the 200 day EMA. At this point, the market is very likely to find some interest, especially considering that the 50 day EMA is starting to reach towards that as well. Longer-term, cold temperatures in the United States should continue to drive up demand, although there has been massive amounts of drilling over the last year which is starting to cause a bit of an issue as well. It is only a matter of time before the demand overwhelms the short term supply though, and at this point it’s likely that the market will continue to grind towards the gap above at the $2.75 region.
NATGAS Video 14.11.19
Looking at the chart, I do believe that it’s only a matter of time before we fill that gap, and then eventually break towards the $3.00 level which of course is a large, round, psychologically significant figure. A break above there would of course be a very bullish sign, and as a result it could send this market even higher. At this point, it’s very likely that we will continue to see buyers jump in and try to pick up value, but it’s going to be very choppy in general. Overall, the market is been very noisy, but at this point I think it’s only a matter of time before the traders jump in and start to take advantage of what is going to be massive demand over the next several months.
Please let us know what you think in the comments below