Natural Gas Price Forecast – Natural Gas Markets Continue to Test Gravity

Natural gas markets have rallied a bit during the course of the trading session on Thursday but gave back gains in order to show signs of hesitation. By doing so, it looks as if the market is starting to run out of steam yet again, and quite frankly I think that a pullback that I talked about yesterday still very much needed. After all, markets cannot go straight up in the air forever despite the fact that some people wish it so. Because of this, I think the market is likely to see noisy behaviors going forward, but eventually we will form some type of stabilization that people will be looking at.

NATGAS Video 01.10.21

This is a market that continues to feed upon the lack of supply around the world, and I think that continues to be a major issue. This market will probably show plenty of stabilization underneath, especially near the $5.00 level. That is an area where I would anticipate a lot of noise, and perhaps a lot of value hunting. The market breaking down below that level probably opens up a possible break down towards the $4.50 level, but that is probably about as negative as I think this market gets.

On the other hand, if we turn around a break above the $6.00 level again without pulling back, that would simply be more parabolic momentum jumping into the market and I would have to assume that there is going to be a certain amount of “FOMO” coming into the picture. Clearly, natural gas has been one of the big winners, and I think that probably continues to be the case.

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