Natural Gas Price Forecast December 11, 2017, Technical Analysis
Natural gas markets have been very negative over the course of the week, but we have found support on Friday at the $2.75 level. This is an area that has been massively supportive of the longer term anyway, so I think that it’s only a matter of time before we rally from hearing continue to go much higher. A break above the $2.80 level should send this market towards the $2.85 level, and then eventually towards the $3.10 level after that. There is a certain amount of seasonality when it comes to this market, as colder temperatures in the northeastern part of the United States will typically drive up short-term demand. I think that’s essentially what we are trading on right now, the weather reports over the next couple of days in places like New York, Boston, and Washington DC.
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If we were to break down below the $2.75 level, I think then we go looking towards massive support at $2.50, which is even more important. All things being equal, it’s probably easier to buy natural gas during the month of December that it is to sell it, and now that we have gotten stretched to the downside, and especially as we are sitting just above massive support, it makes sense that as soon as we get some type of impulsive move to the upside, it’s time to start going long. It’s going to be volatile, but if you’ve been trading natural gas over the last couple of years, you’re used to this as until Bitcoin came around, this was one of the more nauseatingly momentum driven markets out there.