Natural Gas Weekly Price Forecast – Natural gas forms weekly hammer

The natural gas markets pulled back during the week, reaching towards the $2.25 level before bouncing significantly. By forming the hammer that it did, it’s a very bullish sign and it could be the beginning of the winter rise that we get every year.
Christopher Lewis
Natural gas weekly chart, October 07, 2019

Natural gas markets pulled back a bit during the week, reaching towards the $2.25 level. At this point, the buyers step back into form a bit of a hammer. The hammer of course is a bullish sign and therefore it’s likely that we could get a bit of follow-through. The $2.50 level above will be resistance, but if we can break above there then the market should go even higher. I believe that colder temperatures coming to the United States and the European Union soon will continue to drive the natural gas markets higher. It’s a simple matter of supply and demand.

NATGAS Video 07.10.19

Longer-term, we obviously have a lot of supply that we will never burn through. However, as storage drops, prices will rise. Storage should start to drop rather soon, as to pictures have suddenly dropped during the Friday session in the northern part of the United States. Granted, not cold enough to drive up demand but it is the first sign of what’s coming. Longer-term, I believe that this market will probably rally until the beginning of January, but obviously there will be the occasional pullback. If you have the ability to buy the CFD contract, then you have the ability to hang on 24 hours a day and place a longer-term trade. Futures markets will obviously be very expensive, but if you have that ability that can work as well. This is the time of year natural gas typically gets a rally, and it looks as if it just kicked off.

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