Natural Gas Price Forecast – Natural Gas Markets Continue Parabolic MoveThe natural gas markets have rallied significantly during the course of the trading session yet again on Wednesday as traders around the world continue to pay close attention to the lack of supply.
Natural gas markets have gone significantly higher during the trading session on Wednesday to reach above the $5.50 level, which extends yet even further the massive amount of bullish pressure that we have seen due to a lack of natural gas, especially in the European Union. As there is a serious lack of natural gas for use, it makes quite a bit of sense that we would see a lot of upward pressure. Furthermore, we have recently seen a lot of disruption when it comes to supply, mainly in the southeastern part of the United States as hurricane Ida caused quite a bit of devastation. Previously, we had seen a heat wave in the United States push demand higher as well, so it has been a bit of a “perfect storm.”
NATGAS Video 16.09.21
As economies around the world reopening, the idea of course is significant when it comes to the idea of demand, but at this point I think we are getting a bit overdone. Having said that, I have also thought that for the last couple of weeks. In other words, we are overdue for a significant pullback, so I would be cautious about getting long here. The $5.00 level underneath would be significant support as it is a large, round, psychologically significant figure, and therefore I think it is probably an area that you would see a lot of interest at the market price. Breaking down below the $4.80 level could signal an even sharper pullback, but ultimately this is a market that still looks very bullish, but you simply cannot “chase the trade” up at this level.
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