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Natural Gas Weekly Price Forecast – Natural Gas Rally Yet Again

Christopher Lewis
·2 mins read

Natural gas markets continue to grind higher due to the hurricane that is ripping through the Gulf of Mexico yet again, showing that there is still concerns about natural gas production. At the end of the day though, this is a time of year where the demand for crude oil should rise anyways, so with that being the case I like the idea that buying dips should continue to work. It is obvious that we have supported near the $2.40 level, just as we have resistance near the $2.80 level. Given enough time, I do think that we break out to the upside though, but we are building some type of base in order to make that happen.

NATGAS Video 12.10.20

The most obvious barrier above is $3.00, which of course is a large, round, psychologically significant figure. Breaking above there would be a very bullish psychological push towards the upwards as far as the market is concerned, reaching towards the $3.25 level, perhaps towards the $3.50 level. If we do pull back from here, I believe there is plenty of support underneath that will continue to lift this market during this time a year.

We are currently trading the November contract as the front month, so obviously there will be a lot more demand in the northern hemisphere during this month. That will be the case going forward for the next couple of contract, so I have no interest in shorting this market at this time. Later on, once we start trading the spring contracts, I will probably start shorting again but right now it is very difficult to do.

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

This article was originally posted on FX Empire

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