Natural gas markets have gapped lower to kick off the trading week, and then spent most of that week filling the gap. This is due to the idea that there could possibly be warmer temperatures in the United States between now and Christmas, but that is somewhat of a fluid and transient influence when it comes to price. This is because it’s only a matter of time before there is a spike in usage this time of year, driving up demand. Currently, the most recent Natural Gas Storage figures were -73 billion, as opposed to the anticipated -75 billion. While it was slightly under expected, the biggest problem that natural gas traders have right now is dealing with the fact that the United States increased production by 17% last year. Natural gas markets are oversupplied and that is a longer-term concerned.
NATGAS Video 16.12.19
That being said, this time of year typically we will see some type of massive spike higher, and if you have the ability to trade a small enough position it’s very likely we will get that again. This is going to be based upon whatever weather report comes out and spooks the market back into concerned about supply, and that is a bit difficult to predict. If we break above the $2.40 level it would obviously be very bullish though. To the downside, the $2.20 level is offering support, just as the $2.00 level underneath is. We are at extraordinarily low levels, so it’s possible value hunters will show up soon.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Natural Gas Price Forecast – Natural Gas Markets Continue To Rotate
- Crude Oil Weekly Price Forecast – Crude Oil Markets Pressing Resistance
- Crude Oil Price Forecast – Crude Oil Markets Run Into Resistance
- S&P 500 Price Forecast – Stock Markets Confused By Trade Deal
- E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 28131 Controlling Today’s Price Behavior
- USD/JPY Weekly Price Forecast – Dollar Continues To Test Resistance