Natural Gas Price Forecast – Natural Gas Markets Continue to Grind Higher

Natural gas markets have pulled a little bit higher during the trading session on Wednesday to reach towards the $5.65 level. This is a market that I think continues to see a lot of noisy behavior, but it is bullish in general. The 50 day EMA sits at the $5.21 level and offers significant support multiple times in the past as you can see. The market has been rallying quite nicely, and it looks as if we are going to go looking towards the $6.00 level soon, especially as temperatures are starting to drop in the northern hemisphere. With that being the case, the market should continue to see a lot of demand, which is something that has already been a problem.

It is possible that we can see this market form a bit of a symmetrical triangle, and if we were to break much higher, that could signify a huge move to the upside. It is a longer-term move just waiting to happen, but at this point in time I believe that if we were to turn around a break down below the $4.50 level, then we may see more of a bigger move to the downside. Regardless, I think that the next couple of months should continue to be bullish for the market regardless, if for no other reason than the seasonality of this time of year. I like buying dips, and I believe that we will continue to see this market behaving the same manner, as we have over the last couple of months. Shorting is all but impossible at this point in time.

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