Natural Gas Price Forecast – Natural Gas Markets Continue to Flirt With $5

Natural gas markets have gone back and forth around the $5.00 level, an area that has been important more than once, and of course will attract a lot of headlines as it is such a big round figure. This of course attracts a lot of attention in general, and therefore a lot of headlines will cross terminals that have people scrambling. Nonetheless, it is worth noting that the candlestick is a little bit hesitant to break above there, which would be natural given the fact that it would be so important.

NATGAS Video 10.09.21

That being said, there is a lot of demand out there for natural gas and at this point it would not surprise me at all if we were to take off. Nonetheless, there is a bit of a parabolic move at work here, so I think a pullback makes quite a bit of sense. The $4.60 level begins a significant support zone down to the $4.50 level. Breaking down below that then opens up more support at the $4.20 level. That being said, I do not expect to get all the way down to this region.

With particularly concerning about this is that this is historically a very weak time of the year. As colder temperatures head into the United States and Europe of the next few months, one has to wonder whether or not the supply constraints can be fixed? Russia has been playing games by holding back some of the gas heading to Europe, in order to get the Nord Stream 2 pipeline blade. I suspect eventually this game ends but right now it is obvious that you cannot be a seller.

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