Natural Gas Price Forecast – Natural Gas Markets Give Up Early Gains
Natural gas markets have rallied initially during the course of the trading session on Friday but gave back gains end up forming a bit of a shooting star. It is worth noting that we filled a gap, and that of course is an area that could cause a bit of trouble, but at this point in time we also have to keep in mind that this time of year natural gas does tend to have a bit of strength. Here is an interesting question: “are we about to form a massive head and shoulders?” That of course would be the most painful move for a majority of the market participants, and sometimes that is exactly what happens. Having said that, it is not until we break down below the bottom of the hammer from Tuesday that you can remotely entertain that idea.
NATGAS Video 25.10.21
On the other hand, if we turn around a break above the $5.50 level, then it is likely that natural gas will go looking towards the $6.50 level. This time of year, it is especially strong for natural gas and with so many parts of the world dwindling with their supply, it is likely that will continue to play out. Another thing that would be interesting is that if we broke above the top of the candlestick for the Friday session, it would be an invalidated shooting star, and could send a lot of momentum into this market. This is a market that tends to move on the latest weather reports, so you will have to keep an eye on that in North America as well.
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