Natural Gas Price Forecast – Natural Gas Markets Hit Major Milestone

Natural gas markets have rallied significantly during the course of the trading session on Wednesday to reach the psychologically important $5.00 level, which is an area that would obviously attract a lot of attention. We have pulled back from that level only to turn around and show signs of exhaustion. The size of the candle is something worth paying attention to, and I would anticipate that the $5.00 level could be a bit of a barrier. Now that we have everybody firmly paying attention to the natural gas markets, one has to think whether or not we are getting to the point where things are overdone?

NATGAS Video 09.09.21

There are a lot of issues in various countries around the world with supply, and the recent hurricane issues in the southeastern part of the United States, a lot of refining has been taken offline. In that scenario, you have a lot of issues just waiting to happen. All things been equal, this is a market that I think desperately needs some type of pullback, with the $4.60 level offering reasonable support. Underneath there, then the $4.50 level could come back into the picture.

Pay close attention to the energy issues, as more demand and inflation is starting to be a major issue. The candlestick is rather impressive, but so one would have to think that there are still buyers out there. Nonetheless, we are so over stretched at this point we need to see some type of pullback in order to offer value. Even though I suspect this market is going to continue, you cannot be a seller of this type of market.

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