Natural Gas Price Forecast November 6

Natural gas markets gapped higher on Monday to kick off the week, clearing the $3.40 level an extraordinarily bullish move. I’m a bit surprise that we broke out the way we did, especially considering that we had reached almost as high as $3.60. At this point in time, I think that a short-term pullback makes a lot of sense as gaps do tend to get filled, but clearly you can’t be shorting at this point. I anticipate that the $3.40 level should offer support, and I think the $3.30 level will also offer a lot of support. Ultimately, this is a market that is very seasonal and we are in the seasonal bullish time of year, and that part of the equation makes sense. Overall though, this is a market that I think continues to see a lot of noise, and keep in mind that we now have what looks like a bullish flag on the daily chart, so I think it’s not until we break down below the $3.15 level that you can start think about selling now.

NATGAS Video 06.11.18

Beyond that, the springtime will bring in a lot of selling as well. Pay attention to which month we are trading in the futures markets, because as soon as we hit the month of March, sellers typically come in due to a lack of demand once spring comes in the US. Remember, the US is by far the largest market.