Natural Gas Price Forecast – Natural Gas Markets Pull Back

Natural gas markets have pulled back rather significantly during the trading session on Thursday, as we look a bit over stretched. We continue to dance around the $6.00 level, and I think that is going to be the theme going forward, a bit of digesting after the massive move to the upside. To the upside, if we were to break above the $6.50 level, then it is likely that we could go much higher, with the first target being the $7.00 level. The $5.00 level underneath is sitting at the 50 day EMA, which of course is an area that has attracted a lot of attention previously. The hammer that formed a couple of weeks ago offers the bottom of the range that we are in, and the $6.50 level obviously offers the top of the range.

NATGAS Video 29.10.21

All things been equal, this comes down to the fact that there has been a serious lack of supply in general, so as long as that is going to be the case, I think it is very likely that we could see natural gas pulling back drastically. Nonetheless, this will end up being a nice buying opportunity before is all said and done as we are starting to head into the colder parts of the year and of course there is still a major issue when it comes to supply of natural gas worldwide tiered, we are probably a few months away from seeing this market collapse. If and when it does, this would be an extraordinarily great shorting opportunity. We are not there yet though.

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