Natural Gas Price Forecast – Natural Gas Markets Pull Back to Stabilize
Natural gas markets have pulled back just a bit during the course of the trading session on Wednesday, just as we did during the day on Tuesday. The Tuesday candlestick is a hammer, so that of course shows that there is a certain amount of support and stability as well. This being the case, think it is probably only a matter of time before we see some type of bounce, especially considering that the market has been in such a strong uptrend for several months.
NATGAS Video 14.10.21
The story of a slowdown in production is something that everybody knows about, as we had hurricane Ida hit the southeastern part of the United States and of course we have had floods, heat waves, and everything else going on. Currently, the European Union cannot get enough natural gas, and although the Henry Hub version of natural gas on this chart does not necessarily sell to the EU, the reality is that it still puts pressure to the upside in this market.
If we were to turn on a breakdown below the hammer from the Tuesday session, then the market is likely to go looking towards the 50 day EMA which is sitting just below the $5.00 level. The market breaking above the top of the hammer from the previous session could open up a move towards $5.75, perhaps even the $6.00 level. We been in an uptrend for quite some time, and therefore I do not see this changing anytime soon. That does not a seller mean that we shoot straight up in the air, but one has to assume that the trend will continue.