Natural Gas Price Forecast – Natural Gas Markets Continue to Build Base

Natural gas markets have gone back and forth during the trading session on Friday as we continue to see a lot of support right at the uptrend line that had been part of my triangle on the chart. At this point, it looks like the market is struggling to get above the $5.00 level, but if we can, it could kick off a bit of a recovery. Keep in mind though, we have seen weaker structure as of late, so it does make a certain amount of sense that we could continue to go lower. If we do, then we start to look at the $4.50 level, possibly the $4.00 level after that.

NATGAS Video 22.11.21

Natural gas markets do tend to be very noisy this time year, as the latest weather report may or may not drive prices higher. That being said, it is also worth noting that as we are trading the December contract, it will not take long before we start to look at springtime contracts, which of course bring in a completely different dynamic as temperatures in the United States will start to pick up again.

Ultimately, this is a market that will probably be more or less a range bound in the short term, but the question now is whether or not we have hit the peak for the winter? I know a lot of people cite the issues for natural gas in Europe, but the reality is most natural gas sold on the Henry Hub contracts stay within the United States as Ellen G is not necessarily easy to transport.

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