Natural Gas Price Forecast – Natural Gas Markets Reach Towards Highs Again
Natural gas markets have gapped higher to kick off the trading session on Monday, and then shot straight up in the air. At this point in time, the market looks as if it is trying to break out to the upside yet again, showing signs of going parabolic yet again. At this point, natural gas markets continue to see a lot of pressure to the upside due to the fact that the European Union cannot find nearly enough supply, and therefore it is driving prices through the roof.
NATGAS Video 28.09.21
This all started with the heat wave hit the United States, driving up demand. After that, hurricane Ida came into the picture to drive down production, and then of course the mess in Europe. With this being the case, the fact that commodities in general continue to see plenty of bullish pressure, it is difficult to imagine being able to short this market anytime soon. That being said, these parabolic moves are very sensitive to selling pressure, because a lot of people will panic out of the trade.
To the downside, the $5.00 level is almost certainly going to be an area of significant support, and therefore think it is very likely that we will see buyers coming in based upon value in that general vicinity. That being said, if we break down below that level then we have the 50 day EMA reaching towards the $4.50 low and rising. In other words, I think you have to look at pullbacks as potential buying opportunities yet again. If we can break above the recent highs, then we probably go looking towards the $6.00 level.
For a look at all of today’s economic events, check out our economic calendar.