Natural Gas Price Forecast – Natural Gas Finding Support at Crucial Trendline

Natural gas markets have fallen a bit during the course of the trading session on Monday, as we continue to see a lot of volatility in this market. Quite frankly, the market probably needed to find a bit of value at lower levels, and we most certainly have seen that happen. With this being the case, I think it is only a matter of time before value hunters step back into this marketplace, especially as the temperatures are going to continue to drift lower. We are trading the December contract at the moment, so that of course makes sense that there would be a certain amount of support as well.

NATGAS Video 16.11.21

At this point, the market could rise all the way towards the $6.00 level and still be within the overall symmetric triangle that we had formed, so therefore think it is worth paying close attention to the fact that we are more oversold than overbought at this point, and with that being the case I think we are looking at a “buy on the dip” type of scenario forming. Furthermore, the market has the 50 day EMA above that it will try to get to, perhaps testing the $5.19 level. The situation in Europe continues to deteriorate, and although this is the US market, it does have a certain amount of influence on this contract. All things been equal, we also have the reopening trade that will continue to push energy prices higher over the longer term, so I am looking at this through the prism of value.

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