Natural Gas Price Forecast – Natural Gas Markets Break 50 Day EMA
Natural gas markets have rallied significantly during the course of the trading session on Friday, breaking above the 50 day EMA and clearing the $5.25 level. Because of this, the market looks as if it is ready to continue the upward march, but we need to take out that shooting star from last week and order to have the “all clear” for much bigger move. Ultimately, this is a market that I think will continue to be a “buy on the dips” scenario as the temperatures plunge again, and of course there are concerns about overall attitude of the reopening trade. Ultimately, I think natural gas continues to be one of the better trade for the next month or so.
NATGAS Video 29.11.21
Keep in mind that the markets will continue to see a lot of support underneath, especially near the $4.75 level. The temperatures are starting to drop again in the United States, so that of course helps the situation. Natural gas tends to move on the latest weather report, so you need to be aware of that as well. All things been equal, this is a market that I think continues to see a lot of noise, but more upward pressure than down over the next few weeks. Eventually, we will start trading the spring contracts, but we are not doing so yet, so one still has to think higher more than anything else. The market tends to be very erratic, so you need to be cautious about your position size.
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This article was originally posted on FX Empire
