Natural Gas Price Forecast - Mutant Pressure Building And Natural Gas Markets

Natural gas markets are winding up in this general vicinity, trying to build up a certain amount of inertia as the inventory numbers do well. Ultimately, if we can break above the $2.40 level the market is likely to go looking towards the 200 day EMA which is closer to the $2.55 level. Overall, that is the trade that I'm looking for. Pullbacks at this point could see support at the $2.20 level and breaking down below that level would be very negative. At this point though, it of course looks as if we are trying to find some type of bottom and reach higher based upon winter, as temperatures in the United States are starting to drop.

NATGAS Video 18.10.19

At this point in time, the market is going to continue to be very noisy, but with the wintertime coming it will certainly take off to the upside eventually. The $2.40 level is the initial barrier, the 200 day EMA is the next barrier, followed by the $2.70 level. I believe that we break it given enough time as well, but obviously that would be a significant move. It will take some time to get there, but I do think that it's only a matter of time before the right weather forecasts comes out to send natural gas much higher. This could lead to a roughly 2 ½ month jump, and then the breakdown when we start trading Spring contracts. Right now it's a simple matter of scaling into a position slowly.

Please let us know what you think in the comments below

This article was originally posted on FX Empire


More Related News

3 "Strong Buy" Energy Stocks That Are Worth a Second Look
3 "Strong Buy" Energy Stocks That Are Worth a Second Look

The oil industry in North America has grown dramatically in the last decade. The rapid expansion of fracking technology has opened previously non-viable oil reserves, and discoveries of recoverable shale oil in Texas and the Dakotas have made the US into the world's largest oil producer six years running. In fact, this past September, the US exported more crude oil than in imported - the first time that has happened since records began in 1949.The boom has not been without growing pains. Expansion of supplies on the market have pushed prices down, negatively impacting oil companies' incomes and stock prices in recent months. Data for the first week of December showed a surprise build of...

An Invisible Menace to the Climate, Revealed in Infrared
An Invisible Menace to the Climate, Revealed in Infrared

To the naked eye, there is nothing out of the ordinary at the DCP Pegasus gas processing plant in West Texas, one of the thousands of installations in the vast Permian Basin that have transformed America into the largest oil and gas producer in the world.But a highly specialized camera sees what the human eye cannot: a major release of methane, the main component of natural gas and a potent greenhouse gas that is helping to warm the planet at an alarming rate.Two New York Times journalists detected this from a tiny plane, crammed with scientific equipment, circling above the oil and gas sites that dot the Permian, an oil field bigger than Kansas. In just a few hours, the plane's...

AP FACT CHECK: Bloomberg says he
AP FACT CHECK: Bloomberg says he's killing coal. He's not

Democratic presidential contender Michael Bloomberg broadly, repeatedly - and wrongly - took a huge amount of credit Friday for driving the U.S. coal industry to its knees. The U.S. coal industry's plunge is largely due to market forces, above all drops in prices of natural gas and renewable energy that have made costlier coal-fired power plants much less competitive for electric utilities.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Economy