Natural Gas Weekly Price Forecast – Natural Gas Finding BuyersNatural gas markets initially plunged during the course of the week but then turned around to see a bit of support late in the week.
Natural gas markets have fallen during the bulk of the week, but turned around to recover quite a bit due to the fact that the market is still trading a January contract, despite the fact that we had warmer than typical temperatures forecasted over the next couple of weeks. Ultimately, this is a market that will continue to see a lot of buying pressures going forward, due to the fact that the colder temperatures almost certainly will be coming, as it is the midst of winter. The 200 week EMA sits just below, near the $2.60 level and therefore I think a lot of people will be paying attention to this pullback as a potential buying opportunity, at least for one more leg higher.
NATGAS Video 23.11.20
To the downside, if we were to break down below the $2.50 level, then the 50 week EMA starts to come into play near the $2.38 level. All things being equal, I do like the idea of buying dips in this market going forward, at least until we start trading spring contracts, which is several weeks away. Remember, futures markets look out into the future, not necessarily what is going on right this moment. This is probably one of the biggest mistakes that retail traders make, focusing on the now instead of the future. This is why the cyclical trade tends to end while it still very cold outside. Typically, that happen sometime in the middle of January. Between now and then, I am a buyer.
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