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Natural Gas Weekly Price Forecast – Natural Gas Markets Recover

By:
Christopher Lewis
Published: Dec 11, 2020, 17:08 UTC

Natural gas started out the week on the back foot, with the warmer temperatures in the United States forecasted. However, it has recovered quite nicely.

Natural Gas Weekly Price Forecast – Natural Gas Markets Recover

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Natural gas markets have fallen rather hard to kick off the week, gapping down towards the $2.45 level before dipping underneath the $2.40 level. However, we have recovered for most of the week to fill the gap and now it looks as if the market is trying to take out the 200 week EMA. If it does, then the $3.00 level above could be targeted. Ultimately, this is a market that is trying to recover from potential warm weather in December but at the end of the day there will still be a certain amount of winter that the northern hemisphere has to deal with.

NATGAS Video 14.12.20

The candlestick of course is bullish looking, and of course the 50 week EMA underneath should offer a little bit of support. Having said that, I think that any rally at this point time should be treated with suspicion though, so if you are a longer-term trader you are probably looking for signs of exhaustion after a nice rally. The most obvious area would be the $3.00 level as we have seen a lot of selling there, and of course we are aware the fact that we should be trading spring contracts rather soon, roughly 6 weeks down the road.

With this being the case, I think that the best trade could be a short-term bounce, but ultimately there are probably even bigger trades to be made on the short side once we start talking about warmer temperatures on a consistent basis as we have more than enough supply of natural gas out there for any amount of demand.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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