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Natural Gas Price Forecast – Natural Gas Markets Continue to Test Bottom of Triangle

By:
Christopher Lewis
Published: Nov 17, 2021, 16:57 UTC

The natural gas markets have fallen a bit during the trading session on Wednesday as we continue to see a lot of noisy behavior. We are sitting on the top of the uptrend line for the massive triangle I have been talking about.

Natural Gas Price Forecast – Natural Gas Markets Continue to Test Bottom of Triangle

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Natural gas markets have dropped a bit during the course of the trading session on Wednesday, as we continue to see a lot of noisy behavior in general. Ultimately, I think this is a market that will eventually find a reason to get buyers involved, although it is worth noting that there are a couple of warm days happening in the northeastern part of the United States.

NATGAS Video 18.11.21

Eventually, LNG pressure will continue to be a major driver, but at this point in time it is likely that we will see more noisy behavior than anything else at this point, so I think the market probably continues to be more back-and-forth than anything else. If we can turn around and break above the highs of the session on Tuesday, then that would open up quite a bit of potential buying pressure to reach towards the $6.00 level.

As for myself, I think there are plenty of reasons to think that natural gas continues to climb so that is how I am playing this market. I simply look for short-term dips like we just got and play the bounce. Longer-term, I think that we probably have several weeks’ worth of bullish pressure ahead, so I think it is only a matter of time before we continue to fill out this triangle. However, if we were to turn around a break down below the $4.50 level, that could be a relatively negative turn of events, perhaps reaching towards the $4.00 level.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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