Natural Gas Price Forecast – Natural Gas Continue to Show Signs of Life

Natural gas markets have rallied significantly during the trading session on Tuesday as we continue to see more bullish pressure. At this point, I think that short-term pullbacks will continue to see buyers, especially near the $5.00 level. This is the December contract that we are talking about, and unless there is no winter, there should be plenty of massive buying in this marketplace. Furthermore, if we have the reopening trade going forward, the demand placed upon the market should continue to be a big deal, and therefore think it is only a matter of time before we get reaching towards the $5.75 level.

NATGAS Video 17.11.21

The bottom of the triangle has held, and therefore it should continue to be very supportive. If we were to break down below there, it is likely that the market is ready to go looking towards the 200 day EMA underneath, which is just above the $4.00 level. All things been equal, that seems very unlikely, but once we get through the wintertime, it is likely that this market will roll over and start to fall rapidly. In the short term though, that is very unlikely to be the case and therefore I continue to look at this as a “long only” type of marketplace. Looking for short-term dips is a winning strategy from what I see, lease for the next several weeks. While there has been a huge demand in the European Union, the United States only produces so much in the way of exports, so this is purely a North American story more than anything else.

For a look at all of today’s economic events, check out our economic calendar.