Natural Gas Price Forecast – Natural Gas Markets Continue to Consolidate
Natural gas markets have fallen ever so slightly during the trading session on Thursday but have also found support near the 50 day EMA. This being the case, the market looks as if it is trying to build up a little bit of a base to continue going higher, as we have seen the market rallied so significantly over the last several months. We are in during the cold time of year in the northern hemisphere, so one would have to assume that demand will only pick up.
NATGAS Video 22.10.21
If we do break down below the $5.00 level, I believe that the most recent low that was formed on Tuesday should continue to offer support, so it is more than likely going to be an opportunity. Breaking down below there then allows for an even deeper correction towards the $4.00 level. The $4.00 level will be backed up by the 200 day EMA, which of course a lot of longer-term traders pay close attention to.
Nonetheless, I do not expect this move and it certainly would go against the overall attitude of the market more than anything else, so I think that it is only a matter of time before natural gas rallies yet again. All things been equal, this is a market that should continue to go higher, but a lot of this comes down to whether or not the winter is going to be extraordinarily cold. If we have a bit of a mild winter, that could slow down the assent of what has been absolutely explosive market. I anticipate a lot of volatility, but I still believe that the buyers are willing to jump in.
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