Natural Gas Price Forecast – Natural Gas Markets Breed Sigh of Relief

Natural gas markets gapped higher to kick off the trading session on Monday, but then were quickly squashed as it has become obvious that the devastation from hurricane Ida will not be as far spread in the energy sector than anticipated. In other words, supply of natural gas might be slowed in the short term, but it should pick back up. With this being the case, the market is likely to pull back a bit, and in fact we have seen a rather significant drop during the session. However, this is also a market that had been overdone to begin with, so at this point in time you have to look at the possibility of a pullback as a good thing.

NATGAS Video 31.08.21

Underneath, I would anticipate that the $4.00 level will of course attract a certain amount of attention as it is a large, round, psychologically significant figure, and of course an area that grabs a lot of headlines. The 50 day EMA underneath should be supportive as well, so therefore I think it is probably only a matter of time before the buyers come back. In the short term though, I would probably get this thing a wide berth, and simply step away from it until the dust settles.

Finding value will be the best way going forward under most circumstances, and I do not think that this market will be any different. Because of this, it is only a matter of time before I will be long again, but it is not going to be at these elevated prices.

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