Natural Gas Price Forecast – December 9, 2020

Natural Gas Technical Analysis and Near-Term Outlook

The outlook for natural gas remains bearish due to the sustained close below $2.48. This was a highly confluent and crucial wave projection for the January contract and the continuation chart that connects to $2.15 as the next major objective. Near-term odds favor a continued decline and a close below $2.37 will clear the way for $2.33 and likely lower during the next couple of days.

Natural Gas - $0.035 Kase Bar Chart
Natural Gas – $0.035 Kase Bar Chart

With that said, Monday’s potential intra-day exhaustion gap, today’s inverted hammer, and confirmed weak bullish KasePO, KaseCD, and MACD divergences suggest a bottom might be forming. These signals do not exude a bullish shift in sentiment, but a move above $2.52, the smaller than (0.618) target of the wave up from $2.368, will call for a test of $2.58. Rising to $2.58 would overcome Monday’s gap down and confirm that this was most likely an exhaustion pattern. A close above $2.58 would call for a larger test of resistance with the next thresholds at $2.67 and $2.76.

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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