Natural Gas Price Forecast – Natural Gas Markets Begin Pullback
Natural gas markets have fallen during the trading session on Wednesday to show signs of negativity. We had formed a massive shooting star during the day on Tuesday, so this was a pullback that had been widely advertised. By doing this move and gives the ability for the market to try and find some type of value underneath as we had gotten far too ahead of ourselves. That being said, natural gas markets are still very bullish and have plenty of reasons to go higher.
NATGAS Video 30.09.21
Russian supply of natural gas into the European Union has caused a major issue, as those supplies are dwindling. Furthermore, we also have to worry about the lack of renewable energy in the EU, as it has simply not held up its end of the bargain. With this being the case, there is a huge rush into natural gas, in order to fire up electrical plants. Industry in the United Kingdom, European Union, and other areas have struggled finding enough power, which means that the demand is still through the roof.
Liquid natural gas supplies are still very tight, so this bodes well for the natural gas markets as well. While I do think that we pull back from here, I also recognize that there should be plenty of buyers underneath to pick up the slightest hint of value. This pullback is something that has been needed for a while, so I am simply waiting to see some type of stability on the daily chart before getting involved again. I would anticipate that the $5.00 level should be rather supportive.
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