Natural Gas Weekly Price Forecast – Natural Gas Markets Stabilize

Natural gas markets have fallen a bit during the trading week but continued to show signs of stability which is a good sign after the shot higher. With this, the market looks as if it is trying to break above the 50-week EMA, which could open up more buying pressure, perhaps reaching towards the 200-week EMA. As temperatures dip in the United States, that should continue to drive the price of natural gas higher due to increased demand.

NATGAS Video 28.10.19

The market is likely to continue to go higher over the longer term as temperatures dip in places like Boston, New York, Philadelphia, and Cleveland. The December contract of course will see a lot of cold weather forecasts typically, and that does drive the market to the upside as we will see traders’ price in the massive withdrawal that we will see. At this point, the market should continue to see buyers coming in and picking up dips as they occur. A simple “buy-and-hold” strategy works for a lot of traders during the course of the winter months. At this point, the market is likely to see part of January we start to see the market selling. At this point, the market then starts to roll over just as rapidly. Natural gas is to be bought this time year and not sold. If it does not show signs of strength, then simply sitting on the sidelines is the only way to play the market going forward. With that, I remain bullish.

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