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

By:
Christopher Lewis
Published: Nov 5, 2024, 14:52 GMT+00:00

The natural gas market continues to see a lot of noise, as the markets continue to focus on the idea of winter temperatures come into the focus of traders around the world.

In this article:

Natural Gas Technical Analysis

The natural gas markets have been slightly positive in the early hours of Tuesday gaining about 1% as New York wakes up. That being said, we are still in the midst of major consolidation. And as I said yesterday, I thought we could see a bit of a bounce. I didn’t necessarily think it was going to be the world’s greatest trade, but this time of year is typically somewhat bullish for natural gas. So, it makes sense that we would try to reach the $3.15 level above. If we can break above the $3.15 level, then it becomes more of a buy and hold market.

But between now and then, I think you’ve got a situation where traders are looking at this as a building up of momentum before the massive spike that you typically see in the middle of winter. Remember, as you’re trading the spot CFD market, you’re actually trading some kind of weird hybrid Frankenstein version of the futures markets, which are focusing on cold weather right now. That being said, it is warmer than usual in the northeastern part of the United States, and that of course is a major factor.

But we also have to keep in mind that in certain parts of America, and this is an American contract. Natural gas is so abundant, it’s in the drinking water. So, let’s keep things under control and understand that this is a short term rallying opportunity. Short term dips do offer value, but most of the year you’ll see natural gas just putter around.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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