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Natural Gas Price Forecast – Natural Gas Give Up Early Gains Again

By:
Christopher Lewis
Published: Sep 22, 2021, 15:19 UTC

Natural gas markets have rallied a bit during the course of the trading session on Wednesday but then turned around to give up the gains yet again as we continue to pull back from an overbought situation.

Natural Gas Price Forecast – Natural Gas Give Up Early Gains Again

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Natural gas markets have rallied initially during the trading session on Wednesday but gave back gains to show signs of exhaustion yet again. Quite frankly, natural gas got way ahead of itself, so it is likely that we will continue to see a lot of noisy behavior. At this point, it is a matter of finding support, because you certainly have to be cautious about shorting this market. We are still very much in an uptrend, and the fact that we are forming an inverted hammer tells me that we are more likely to go lower from here than higher. However, if we were to turn around and take out the candlestick for the trading session to the upside, that would be very bullish.

NATGAS Video 23.09.21

Natural gas has gotten a bit of a boost due to the idea of the heatwave, followed by the hurricane that hit southeastern part of the United States to disrupt refining, which of course shrink supply that was available for the market. After that, we then started to see the European Union struggle with supply coming out of Russia, so it has been a bit of a “perfect storm” for natural gas as of late.

That being said, the market has been very noisy and overdone, so this pullback I think eventually will offer value. I believe that most traders look at it through the same situation as well, so with that being the case, I think if you are looking for some type of turnaround in the charts or support of daily candlestick to get involved with and take advantage of.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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