Natural Gas Weekly Price Forecast – Natural Gas Has Neutral WeekNatural gas has gone back and forth during the week, settling for an unchanged candlestick. Having said that, we are approaching a significant support level.
Natural gas markets have gone back and forth during the course of the week to show a bit of indecision, but at this point in time that is a good thing, considering that we had just pulled back. We are trading the January contract so of course there will be a lot of demand out there in general, so I do like the idea of buying this pullback. Look at this chart it is likely that we would see buyers underneath, so I am very interested in turn things back around and buying on the dips. If we break above the $3.00 level, that would also be a very bullish sign as we should go looking towards the highs again.
NATGAS Video 30.11.20
Cyclically speaking, January is one of the biggest months for natural gas demand, so I would anticipate that there is a bit of a “floor underneath the market” in the short term. In fact, for about the next six weeks or so we will see natural gas generally bid, and then should see selling again once we start trading the spring contracts. Remember, natural gas tends to be overly sensitive to the latest weather report, so it does tend to be volatile. Having said that, in the interim it looks as if the buyers are most certainly starting to make a statement again, but that is not to say that it will be very noisy on the way higher. The 200 week EMA is sitting at the $2.61 level, and I think that probably offers a bit of psychological support as well.
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