Natural Gas Weekly Price Forecast – Natural Gas Markets Show Buyers Again

Natural gas markets gapped lower to kick off the week, and then broke down. However, we have seen buyers come back into the market the turn things around and repudiate the shooting star from the previous week.
Christopher Lewis
Natural gas weekly chart, November 18, 2019

The natural gas markets gapped lower to kick off the week, sliced through the 50 week EMA, and then turned around to form a bit of a hammer. The hammer of course is a bullish sign and it repudiates the idea of the shooting star from the previous week. There is a gap above at the $2.75 level, so we can break above there it’s likely that the market will continue to go much higher.

NATGAS Video 18.11.19

Based upon the cyclicality of the market, natural gas market should continue to go higher based upon the fact that there is a lot of cold weather in the United States and Canada coming, but beyond that we already have seen our take temperatures in the Northeast this year. I think short-term pullbacks continue to offer buying opportunities but for the longer-term trader they simply put on a position to the long side this time a year and wait until about January 10 the start selling it off. It’s obvious that we are entering the bullish season, so I think a lot of traders are starting to get in and try to pick up contracts “on the cheap” when they pullback. If we can break above the $2.90 level that could open up higher pricing, as it would blow through the top of that shooting star from last week and the 200 week moving average. All things being equal I am very bullish of the market, but I recognize that a certain amount of patients will be needed in order to realize profits in the natural gas markets.

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