Natural Gas Weekly Price Forecast – Natural gas markets have negative weekNatural gas markets have had a negative week during the past five sessions, breaking back below the $2.50 level. However, not all things seem as if they look on this chart.
Natural gas markets initially tried to rally but ran into a bit of trouble at the 50 week EMA to turn around and fall below the $2.50 level. This was aggravated by a bearish inventory figure, and therefore people may have bailed on their long positions. However, we are trading the November contract and this is typically the beginning of the pop higher that we get every winter. If that’s going to be the case, then the market should continue to show bullish pressure given enough time.
NATGAS Video 30.09.19
Longer-term traders will probably be looking to recapture the $2.50 level before they apply a significant amount of cash to the market, but the recent pop was of course relatively strong and it does suggest that perhaps people are starting to buy natural gas for the winter. As temperatures in the northern hemisphere cool off, that should send traders into the marketplace looking to pick up natural gas for the winter. In fact, the cyclical trade tends to run until about the second week of January, and it does tend to be very brutal once it kicks off. This may have been the initial move to the upside but given enough time we will more than likely recapture the highs that were made the previous week, and more money will come flooding into the market. With that being said, a little bit of patience should offer a buying opportunity, either above the $2.50 level or based upon some type of supportive candle underneath. I will keep you up-to-date as to what I see here at FX Empire.
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