Natural Gas Price Forecast – Natural Gas Markets Shoot Higher Yet Again

Natural Gas markets have exploded to the upside yet again during the trading session on Wednesday, reaching above the $4.50 level. In fact, the market even pierced the $4.60 level at one point, as we continue to look at the shutting down of refineries in the southeastern part of the United States, due to hurricane Ida. All things been equal, that should disrupt supply, so it makes sense that we go higher. Just as I said yesterday, I am looking at the possibility of buying dips, but the catch is that you may or may not get one at a decent price.

NATGAS Video 02.09.21

At this juncture, I believe that the $4.00 level will continue to offer a bit of a “floor the market”, and therefore any time we get anywhere near there I imagine there would be plenty of buyers to get involved. At this point, natural gas looks as if it could go quite a bit higher, but by just about any measure, the market is overbought at this point. That being said, you certainly cannot be a seller, because quite frankly there so much in the way of bullish pressure that you cannot fight it. Because of this, the market is likely to continue to be in the crosshairs of most traders.

Expect volatile moves, and the possibility of a severe correction, but at the end of the day you simply cannot sell this market anytime soon. Another factor of course could be the commodity markets going higher in general, which will have a little bit of a “knock on effect” over here, as all things commodity related continue to pick up a bit of a bid.

For a look at all of today’s economic events, check out our economic calendar.