Natural Gas Weekly Price Forecast – Natural Gas Markets to See Further Correction?
Natural gas markets have initially shot higher during the trading week, reaching towards the $5.50 level before fresh selling came into the picture. At this point, it will be interesting to see where we go next, but if we were to break down below the weekly candlestick for this past week, that could lead to an even bigger correction. At that point, then the market could go looking towards the $4.50 level, maybe even down to the $4.00 level.
NATGAS Video 22.11.21
On the other hand, we could just simply start a new trading range, but this is a market that has been so extraordinarily volatile as of late it would not be a huge surprise to see a simple bounce around the triangle that I have drawn on the chart. That would make a certain amount of sense, due to the fact that natural gas tends to move on the latest weather reports in the United States, as this is solely a US market, more or less. After all, there is a certain amount of LNG that gets exported out of the United States, but it is not significant enough to make a major effect on the price.
When you look at the overall attitude of the market, it did get far too ahead of itself, but quite frankly there will continue to be questions about the temperature and the fact that we are trading the December contract of course will have some say as well. As we start to roll over in the spring, typically this market breaks back down so I think the next few weeks we may see a little bit of negativity.
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