Natural Gas Price Forecast – Natural Gas Continues to Plunge Towards Trendline

Natural gas markets have fallen quite significantly during the trading session on Tuesday as we go plunging towards a major trendline. We are currently sitting just above the $5.00 level, which is also an area that you need to pay close attention to. If we can hang on to this area, then it is very likely that we could see a bit of a buying opportunity. That being said, the market is likely to continue being very noisy, but if we can get some type of stabilization, it is very likely that natural gas continues the overall uptrend.

NATGAS Video 10.11.21

If we were to break down below the $5.00 level, then it is likely that we would see a much more significant selloff, although this is not necessarily the time of year you expect to see that happen. With this being the case, I think there will eventually be value hunters trying to get involved, so I am very interested in how this market closes at the end of the day. In fact, I think that tomorrow will be one of the more important trading sessions in natural gas this month. Keep in mind that we are trading the December contract, which of course suggests that we should see generally higher prices.

Another big thing to pay close attention to is whether or not supply is starting to pick up. Right now, it does look like it is trying to do so, and therefore you have to keep that in mind. Nonetheless, this triangle is the most important thing that I am paying attention to.

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