Natural Gas Price Forecast – Natural Gas Continues to See Upward Pressure

Natural Gas Technical Analysis

The natural gas market shot straight up in the air in the early hours on Tuesday again, as it looks like we are in fact trying to break out to the upside. Ultimately, I do think this is a market that’s trying to price in the idea of the shifting seasons. And there is a little bit of a story coming out of China with the trucks in that country massively adopting natural gas as fuel instead of crude oil, so that could come into play as well. Either way, there’s no need to overcomplicate it.

This is a market that is trying to break out to the upside and reach the $2.50 level. If it can break above there, it should continue to go much higher, perhaps reaching the $2.70 level initially, and then over the longer term, try to get to the $3 level. The $3 level, of course, is a large round psychologically significant figure that a lot of people will be paying close attention to.

With that being the case, I think you have to look at this as a market that short-term pullbacks continue to offer buying opportunities, especially around the $2.40 level and $2.35 level that both have shown themselves to be important as of late. Ultimately, you also have to look at this through the prism of perhaps we are trying to price in the idea of colder months ahead and more demand coming out of the United States. Remember, this is a market that is greatly influenced by US weather patterns, as it is a contract that is based off the Henry Hub contract in Louisiana. All things being equal, it does look like we continue to buy dips.

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