Natural Gas Price Forecast – Natural Gas Markets Pricing In Hurricane
Natural gas markets have rallied again during the trading session on Friday, as we continue to see a lot of bullish pressure and a market that has finally hit the longer-term target that I had been talking about. Now that we are here, there is another fundamental reason to keep this market going higher, and the form of what could be a tropical storm turning into a hurricane that is getting ready to hit the refineries of the southeastern part of the United States, and other words slowing down refining capacity. If that is going to be the case, then it is obvious that prices will probably continue to go higher, perhaps reaching at the very least to the $4.50 level.
NATGAS Video 30.08.21
Looking at this couple of pass candlesticks, it shows that we have had an explosive move higher and of course the volume that has come into the marketplace both suggests that were ready to get going again. The $4.00 level underneath could be supportive, and then after that you have the 50 day EMA underneath near the $3.80 level. It is sloping higher, so I think it will have a certain amount of dynamic support if we do pull back towards it, so all things been equal, this is a market that I think still has further to go and value hunters will be willing to take advantage of little dips when they occur. This next couple of days, meaning the weekend, will be crucial to determine where we go next as headlines about damage to these refineries could come into play.
For a look at all of today’s economic events, check out our economic calendar.