Natural Gas Weekly Price Forecast – Natural gas markets explode to the upsideNatural gas markets rallied significantly during the week, slamming into the $2.50 level. That’s an area that will attract a lot of attention because it is a psychologically important number and an area where we have seen action previously.
Natural gas markets have rallied during the week, reaching towards the $2.50 level, an area that of course is a large, round, psychologically significant figure, and an area that had been massive support in the past. However, at this point it looks as if a pullback it’s only going to offer a nice buying opportunity, as we are starting to get closer to the wintertime trading which is always really strong for natural gas as demand picks up quite rapidly. This is probably one of the worst kept secrets in the futures markets, so I believe that some people are trying to get involved early.
NATGAS Video 09.09.19
However, even though we have broken through a downtrend line that recently, the reality is that we are not going to go straight up in the air. When you get a bit of a trend change, you will get a choppy back and forth type of move, followed by an explosive move in return. At this point, you can see that last year we rallied almost $2.00 by the time we rolled over again. All things being equal, this is a market that should continue to go higher over the longer-term, but you will probably need to see some type of supportive daily candle stick after a pullback in order to get involved. It now appears that the $2.00 level was the absolute “floor” in the overall market. That being the case, if we were to turn on a break down through there, the market would fall apart in a catastrophic move.