Natural Gas Price Forecast – November 18, 2020

Natural Gas Technical Analysis and Near-Term Outlook

Natural gas settled below crucial support around $2.72 for the third straight day. Odds continue to favor a larger decline and a test of the next major objective at $2.51. Falling below $2.68 will call for $2.63, which then connects to $2.51.

Nevertheless, Tuesday’s long-legged doji and Wednesday’s inverted hammer suggest a larger test of resistance might take place before taking out $2.63. Today’s initial move up held Monday’s $2.78 midpoint, but a close above this will complete the long-legged doji and inverted hammer. This would then call for a test of $2.82 and possibly $2.87. The $2.87 level is key for the near-term because this is the confirmation point for the long-legged doji and inverted hammer and is in line with the bottom of Monday’s gap down from $2.949. Settling above $2.87 is doubtful but would reflect a bullish shift in external factors and sentiment.

Natural Gas - $0.025 Kase Bar Chart
Natural Gas – $0.025 Kase Bar Chart

This is a brief analysis for the next day or so. Our weekly Natural Gas Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key natural gas futures contracts, calendar spreads, the UNG ETF, and several electricity contracts. If you are interested in learning more, please sign up for a complimentary four-week trial.

Published by

Dean Rogers, CMT

Dean Rogers, CMT is the general manager of the Kase Call Center in Albuquerque, New Mexico. He oversees all of Kase and Company, Inc.’s operations including research and development, marketing, and client support. Dean began his career with Kase in early 2001 as a programmer but has developed into Kase’s senior technical analyst. He writes Kase’s award-winning weekly Crude Oil, Natural Gas, and Metals Commentaries. He is an instructor at Kase's classes and webinars and provides all of the necessary training and support for Kase's hedging models and trading indicators for both retail and institutional traders.

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