Natural Gas Price Forecast – November 4, 2020

Natural Gas Technical Analysis and Near-Term Outlook

Then near-term outlook for natural gas remains bearish and a close below $3.03 will call for another attempt at $2.98 and lower. However, as stated in yesterday’s update, the decline from $3.369 lacks a wave structure that can sustain a larger test of support without testing resistance soon. Today’s bullish hammer, confirmed intra-day bullish divergences, and the wave formation up from $3.002 suggest such a move will probably take place tomorrow.

Rising above $3.09 before taking out $3.03 will call for a test of $3.15. This is a confluent wave projection, the 38 percent retracement of the decline from $3.396, and the hammer’s completion point. Closing above $3.15 is currently doubtful but would call for a more significant test of resistance where $3.25 is the hammer’s confirmation point and the barrier to a renewed bullish outlook.

Natural Gas - $0.01 Kase Bar Chart
Natural Gas – $0.01 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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