Natural Gas Price Forecast – Natural Gas Markets Give Up Early Gains

Natural gas markets have rallied a bit during the course of the trading session on Friday, but only turned around to show signs of weakness again. That being said, I do not necessarily think that the natural gas market is about to fall apart, just that we are getting close to a well-deserved pullback in a market that had gotten far ahead of itself. At this point, I look at the $5.50 level as a significant support level over the last couple of weeks. If we break down below there, then it is likely that the market could go looking towards the $5.00 level, where we also see the 50 day EMA reaching.

NATGAS Video 11.10.21

The market breaking down below the $5.00 would of course be very negative, and could open up a bit of a “flush lower”, but at this point in time I think it is only a matter of time before buyers would come back in. Nonetheless, if we were to break down below the 50 day EMA, it is likely that we could go looking towards the $4.00 level. At this point, the natural gas markets continue to see plenty of fundamental reasons to go higher, as there is a massive shortage. Nonetheless, you should also keep in mind that the natural gas markets quoted here are more or less localized to the United States, so it is only a matter of time before the supply comes back. If we get a cold winter though, that could spell disaster and send this market much higher.

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