Natural Gas Price Forecast – natural gas markets continue to grind higher

Natural gas markets rallied during the day on Friday, ever so slightly. We gained the 0.1% by the time the Americans got done with the initial push. I think that the market is going to struggle above here though, because there is so much in the way of resistance near the $3.00 level. If we were to break above that level, then we could go even higher. However, this is the time of year where you generally see buyers coming into the market, as there is a significant amount of demand coming out of the northeastern part of the United States through the winter months. The futures markets are trading the November contract now, which of course brings in colder months in the areas like New York City, Boston, and Philadelphia. Because of this, it’s likely that we will continue to see buyers of dips. However, being a bit overextended makes me think that we should pull back rather soon.

The $2.85 level should be supportive, just as the $2.75 level should be. In general, you can sell this market but you would absolutely have to get out of this market if we were to break above the $3.00 level. The volatility is probably the one thing you can count on, but the seasonality of this market certainly is starting to favor the buyers as we have seen over the last several days. I’m cautiously optimistic but would prefer to find value.

NATGAS Video 24.09.18

This article was originally posted on FX Empire

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