Advertisement

Natural Gas Price Forecast – Natural Gas Trading Around Big Figure

Natural gas markets have gone back and forth during the trading session on Thursday, as we are sitting right about and the $3.00 level, an area that in and of itself of course would attract a certain amount of attention. Ultimately though, this is a market that is being driven higher by a whole host of reasons, not the least of which of course is the cold weather coming to the north, as demand will pick up quite drastically.

NATGAS Video 23.10.20

When you look at the chart, you can see clearly that the 50 day EMA has been offering support, fairly reliably since we were down at the $1.80 level. This signifies that we are in an uptrend and channel, albeit one that is very choppy more than anything else. I think that the market continues to see a lot of back and forth in the short term, perhaps even a pullback towards the $2.80 level, maybe even down to the $2.60 level where the 50 day EMA sits.

The idea is that you are looking for value, because quite frankly the natural gas markets have been driving higher for some time and of course we had a ton of bankruptcies out there over the last year or so that should continue to drive down supply, at least for the time being. Beyond all of that, this is a cyclical trade that happens almost every year so quite frankly there is no reason to think that this year will be any different. I look at pullbacks as buying opportunities, at least until we start trading the spring contracts a few months down the road.

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

This article was originally posted on FX Empire

More From FXEMPIRE: