Natural Gas Price Fundamental Daily Forecast – Trade to $3.109 Will Fill in Gap Formed Two Weeks Ago
The absence of below average temperatures in key demand areas continued to weigh on natural gas prices on Monday. The market is currently testing a key technical area. Trader reaction to this zone could determine the near-term tone of the market.
January Natural Gas futures settled at $3.140, down 0.051 or -1.60%.
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From November 21 to November 23, according to natgasweather.com, “The central and southern U.S. will be mild with highs of comfortable upper 60s to 80s, but then cooling. The West will see weather systems with valley rain and mountain snows, while only slightly cool.”
“A milder break is expected Tuesday to Wednesday over much of the country, then another cold shot across the northern U.S. next week. Demand will be increasing to high this weekend.”
Forecast
The main trend is up according to technical indicators, however, momentum is trending lower. Today is the sixth day down from its recent top at $3.321.
The main range is $2.983 to $3.321. The market is currently trading inside its retracement zone at $3.151 to $3.111. Trader reaction to this zone will determine the near-term trend.
Based on the early trade, a sustained move through $3.111 will indicate the presence of sellers.
Overcoming and sustaining a rally over $3.151 will signal the return of buyers.
Holding inside $3.151 to $3.111 will be a sign of investor indecision.
A trade to $3.109 will fill in the bullish gap formed two weeks ago.
The price action the last two weeks strongly suggests that without the return of a lingering cold front, natural gas is likely to continue to drift sideways to lower.