Natural gas price forecast – Natural gas closes the spread
Natural gas closed the gap it formed last week and then retreated accordingly, suggesting that the negativity may continue, especially since we also have the 200-day exponential moving average at the -above. In principle, warmer temperatures are expected in the United States, which will surely continue to pose problems for the market and so it has to be assumed that the price will continue to struggle to rise. Obviously the shape of the candle is very bearish so I think it’s probably only a matter of time before we fall into the region we were in. If we finally cross the $ 3.65, it is very likely that we will go to the minimum.
Turning around and breaking above $ 4.25 would be a very bullish sign but I think temporarily then I see the market peaking at $ 4.75 especially since we are already trading the January futures contract. Basically if the conditions don’t change, I think we will soon start to integrate the arrival of spring into the price and therefore a drop in demand. In this regard, I am fully aware that Europe and Asia have difficulties in finding enough natural gas, but we must not forget that the United States cannot export enough natural gas to skyrocket. the market price that I am analyzing. Finally, I think we can expect high volatility, especially if we take into account that we are going towards the end of the year and that it is quite common to see a lot of noise.
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This article originally appeared on FX Empire
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