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Natural Gas Price Outlook – Natural Gas Continues to See Noise

Published: Dec 06, 2024, 15:22 GMT+00:00

The natural gas market slumped early on Friday, as the market continues to see a need for momentum in this general area. At this point, the market seems as if it is trying to find its floor.

In this article:

Natural Gas Technical Analysis

The natural gas market has pulled back just a bit during the early hours on Friday as we continue to see a lot of noisy behavior. All things being equal, we are sitting just below the $3 level, which of course is a large round psychologically significant figure. That being said, I do think that there are plenty of buyers underneath, but the weather is obviously going to continue to cause more demand for natural gas in the United States.

The natural gas markets that you’re trading in typically are based on the Henry Hub contract, which is out of Henry, Louisiana. So, the United States is by far the most important factor in this market. That being said, there is a little bit of a knock-on effect in the sense that a lot of those pipelines go through Ukraine and Europe, and the Europeans end up having to buy natural gas from America. In general, I do think this is a market that has another surge higher. So, I’m looking for signs of a bounce and continuation and once we get that, I will probably place a short-term trade.

Natural gas is a very difficult market to trade in in the longer term, mainly because it’s so erratic and so volatile. This time of year, though, is typically fairly strong. The futures markets of course have a direct effect on what you’re seeing in your CFD charts. So, keep in mind they are trading out into the future, which means the winter actually ends quicker than it does in the real world. So, what you’ll see in the next month or two is natural gas will just kind of roll over if the cycle holds.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.



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