Natural Gas Price Forecast – Natural Gas Markets Find Floor

Natural gas markets have initially fallen during the trading session on Tuesday to see a real challenge put up by the sellers. That being said, the more likely scenario at this point has been that it is not necessarily short sellers, but just a little bit of profit-taking after a huge move to the upside. After all, natural gas has gone straight up in the air for a while, and therefore I think what you need to see is that the market recognizes gravity. We have seen that happen now, so it is very likely that we will continue to see a lot of choppy behavior.

NATGAS Video 13.10.21

That being said, we did end up forming a bit of a hammer which of course in and of itself is a bullish sign. If we break above the top of the hammer, then we could go looking towards the $5.75 level, and then possibly the $6.50 level. The $6.50 level has been like a ceiling in the market, so you need to be cognizant of the fact that there will be a certain amount of selling pressure in that area as well.

If we break down below the bottom of the hammer for the trading session on Tuesday, then it could open up a move down to the 50 day EMA, possibly even lower than that to reach towards the $4.75 level. Nonetheless, all of the fundamentals continue to favor strengthening natural gas prices, so I do not see the point of trying to get short of this market anytime soon. With this being the case, I think what we have here is a market that remains “buy on the dips.”

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