Natural Gas Price Forecast – Natural Gas Markets Continue to Pull Back
Natural gas markets have initially tried to rally again during the trading session on Tuesday, but the $5.00 level has offered a significant amount of resistance. Because of this, the market looks as if it is going to continue going lower, perhaps towards the $4.50 level underneath. Quite frankly, the market has been overdone for quite some time, so it certainly makes quite a bit of sense that we would see a continued move lower. The market cannot go in one direction forever, so that is something that makes quite a bit of sense.
NATGAS Video 22.09.21
The market had been so parabolic that I have been saying for a while you simply cannot buy it. Obviously, it is difficult to short it, but it is worth noting that the $4.50 level will more than likely be backed up by the 50 day EMA, so it all comes together quite nicely in that general vicinity, assuming that it does in fact happen. On the other hand, if we turn around to take out the top of the inverted hammer from the Monday session, then it is obvious that we are going to go higher. Nonetheless, this is a market that still looks at a lack of supply as a major issue, and of course more importantly, the lack of refining capacity at the moment.
This might be a short-term phenomenon, but really at this point in time the trend is to the upside and that is the most important thing to pay attention to. Ultimately, I am either long or on the sidelines for this market currently.
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