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Natural Gas Price Forecast – Natural Gas Markets Testing Major Support

Christopher Lewis

Natural gas markets have gone back and forth during the trading session on Tuesday, in relatively quiet trading, albeit in a slightly negative manner. The market is trading between the 50 and the 200 day EMA indicators, and at this point it makes quite a bit of sense that we grind away in this area, because we are trying to figure out where to go next. That being said, we are in the most bullish time a year and that is something that has to be in the back of your mind when trading this commodity. Unfortunately, the winter trade isn’t as easy as it typically is in natural gas, because there has been so much in the way of drilling over the last year. In other words, supply as much stronger than it usually is.

NATGAS Video 20.11.19

However, I still believe that this market goes higher due to the fact that the United States is facing colder temperatures than usual this time year, and it’s likely that will continue to be a major driver of this market as people and places like Boston, Philadelphia, New York, and Chicago heat their homes with the natural gas by an overwhelmingly large margin. Because of this, I am looking for opportunities the by natural gas “on the cheap”, but I recognize that the weekly inventory numbers cause mass chaos in this market. All things being equal, I do like the idea of buying these dips, but I need to see a move above the gap at $2.75 to get extremely bullish.

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This article was originally posted on FX Empire