Natural Gas Price Forecast – Prices Continue To Rise As Contract Roles OverWe are in the middle of rolling over the contract into the January month, and that of course has me changing the chart, but at this point it’s very likely that the market is going to continue going higher anyway, due to the cyclicality of the commodity.
The natural gas markets have rollover into the January contract and looks very bullish. At this point, we are approaching the $3.00 level, and it’s likely that the market will eventually try to break through there. It makes quite a bit of sense though, considering that temperatures in the United States will continue to get lower, driving up more demand. Overall, the market is very bullish and likely to continue to find plenty of buyers. Short-term pullbacks at this point should continue to find plenty of support, not the least of which will be at the $2.75 level which is a gap, and of course an area that was previously resisted. At this point, the market should have a bit of “market memory” going forward, and therefore it would make a lot of attention to people who have missed the move could be a buying opportunity.
NATGAS Video 07.11.19
The 200 day EMA underneath is hanging around the $2.57 level, and at this point the 50 day EMA looks as if it is trying to break above there as well. Ultimately, I like the idea of the potential “golden cross”, and that would bring in longer-term buyers as the market is decidedly bullish in general, and therefore at least until the middle of January itself, it’s a “buy on the dips” type of scenario as demand will only increase. Once we start trading spring contracts though, that could change things rather drastically.
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