Natural Gas Price Forecast – Natural Gas Has Yet Another Big Move
Natural gas markets have gapped higher to kick off the trading session on Thursday, and then shot straight up in the air to reach towards the $6.00 level. Natural gas markets continue to see a lot of bullish pressure due to a severe kink in the supply chain, and as a result we should continue to see higher pricing. Furthermore, cooler temperatures should be coming rather soon, so that will add even more pressure on the natural gas markets.
NATGAS Video 15.10.21
To the downside, the $5.00 level has offered support, and it now is starting to act as a bit of a “floor the market.” There should be plenty of buyers in that area, and therefore think it is only a matter of time before we get a significant push to the upside if we get see some type of momentum going. Breaking above the $6.00 level opens up the possibility of a move towards the $6.50 level, which is the most recent high.
If we were to break down below the $5.00 level, then it is possible that we could go looking towards the 50 day EMA, maybe even the $4.50 level. We are in an uptrend, and that is exactly how I would trade this market. The market simply cannot be shorted anytime soon, due to the fact that the demand picture is still going to continue seeing more momentum. The choppy behavior does suggest that we could get a short-term pullback, but that should be thought of as a bit of a value proposition going forward. The market will continue to see violent and choppy behavior, but upward momentum more than anything else.
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