Natural Gas Price Forecast November 9

The natural gas markets remained somewhat elevated during the trading session on Thursday, even though we are starting to finally drift a little bit lower. I think at this point, we are looking at a market that needs to pullback towards the $3.30 level, which is where the gap started. Gaps tend to get filled, and of course we are far ahead of ourselves.

NATGAS Video 09.11.18

It’s not until we break down below the $3.15 level that I would be concerned with the uptrend, and with the overall fundamentals suggesting that we should go higher, and I think that the winter coming of course adds the seasonality to the reasons that we should go higher. However, you are probably going to see this market dropping down to lower pricing in order to pick up enough momentum to continue the uptrend. We have a bullish flag that was clearly busted above, and now are simply hanging in midair.

With that being the case, I think that the smartest move is to simply sit on the sidelines. While you could try to short this market to fill the gap, that is typically a fool’s errand, and I would not suggest doing so. A simple pull back is all you are looking for some patients will be the better part of valor when it comes to this market. I do believe that this market will probably continue to try to reach towards the $4.00 level, but it’s going to take some time to see this.