To the upside, I believe that the $3.00 level above for gas will continue to be very resistive, and therefore I would be very surprised to see the market break above there. If it did, that would obviously be a huge surprise, probably catching a lot of traders off guard. To the downside, I see the $2.00 level as being a longer-term target, but there are multiple areas where we could run into trouble along the way. It does not take a huge amount of imagination to suggest that this market could go lower due to the fact that warmer temperatures are coming, and of course, the fact that you could use a little bit of that same imagination to see a bit of a head and shoulders pattern.

Ultimately, I do not see any reason to be buying this market anytime soon, as we are far beyond the winter demand season based upon the futures contract. Rallies at this point in time should be thought of as selling opportunities, as we have seen during this candle.

The post Natural Gas Markets Stall appeared first on Iran News Daily.

“Natural Gas Price Forecast – Natural Gas Pull Back to End Week”

Keep in mind that the market is likely to continue to favor higher pricing over the next month or so, as we are trading the January contract, one of the most heavily positive months from a demand standpoint. As temperatures drop in the United States and northern Europe, that will continue to drive the demand for natural gas higher. At this point, I have no interest in trying to short natural gas, because of the cyclical trade if for no other reason. If you look at the chart from a longer-term perspective, you can make an argument for a bit of a channel, which we have recently bounced from. Typically, we will see the market rally for a little further, perhaps into the second week of January, when we start trading the spring contracts and sell off yet again.

The post Natural Gas Markets Forecast appeared first on Iran News Daily.