Natural Gas Weekly Price Forecast – Continue Massive Drive Higher

Christopher Lewis
Published: Oct 30, 2020, 18:23 GMT+00:00

Natural gas markets have rallied significantly during the week, breaking above the $3.35 level rather handily, and now looks set to threaten the $3.50 level.

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Natural gas markets have rallied significantly during the course of the week, reaching towards the $3.40 level by the time we got halfway through the Friday session. Ultimately, this is a market that should go looking towards the $3.50 level, which of course is a large, round, psychologically significant figure. That is an area that I think should continue to see a lot of interest, but quite frankly I think we go higher than that based upon the recent action.

NATGAS Video 02.11.20

The thing about the natural gas market is that it is being driven by hurricane noise in the Gulf of Mexico and of course the fact that we are heading into the coldest time of the year. After all, the market is likely to see a lot of demand over the next few months, as and therefore selling is all but impossible. The $3.00 level underneath will course attract a lot of attention, just as the $2.60 level will be where we have seen a massive push higher. So, at this point in time, one would have to anticipate that there would be a lot of demand down there. However, it is very unlikely to reach down there, at least anytime soon.

I think ultimately, we could go looking towards the $4.00 level, but that does not mean we get there right away. As bullish of this market has been, we need to see some type of pullback in order to find value that we can take advantage of. Buying all the way up here would simply be “chasing the trade”, which of course is a great way to lose money.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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