Natural Gas Weekly Price Forecast – Natural Gas Markets Continue To Show Signs Of Bullish PressureNatural gas markets rallied during most of the week, slamming into the highs at $2.75 which has caused resistance in the past. Ultimately, the market should continue to see upward pressure.
Natural gas markets have broken higher during the week, slamming into the $2.75 level which of course is an area that has been resistance previously. The fact that we pull back from there should not be much of a surprise, but we don’t see in the weekly timeframe is that the Freddie candlestick is a nice-looking hammer that sits on top of the 200 day EMA. At this point, the market looks likely to continue to see buyers looking for value in a market that cyclically should be strong this time of year anyway.
NATGAS Video 04.11.19
The temperatures in the United States are starting to fall rather drastically, and that means that we will see more demand for natural gas going forward. As I live in a part of the United States that uses a lot of natural gas in the wintertime, I can tell you that heaters are running at full blast already. With that being the case, we should continue to see demand and therefore higher pricing given enough time. While the latest inventory number was still a little bit bearish, cold temperatures have only shown up in the last few sessions, so it may take a little bit of time to get to the point where natural gas supply becomes a bit of an issue.
Regardless, this is a cyclical trade that I take every year, and I recognize that it’s only a matter of time before you break out. I believe that the $3.00 level will be resistance but given enough time we should sliced be there as well. Once we do, then it opens up a door for a long position until the middle of January.
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