Natural Gas Price Forecast – Natural Gas Markets Looking for Buyers
Natural gas markets have initially plunged during the trading session on Wednesday to break down below the $5.00 level, which of course is a psychologically important level. Nonetheless, this is also a market that has recently been rocked back and forth by the latest headline noise coming out of Europe, which is a bit ironic considering that the contract is specifically North American. Remember, the United States is not set up to be a massive exporter of LNG. Because of this, it is very likely that we continue to see a lot of noisy behavior, but if you have been trading natural gas for any length of time, this should be nothing new.
NATGAS Video 11.11.21
When you look at the chart, it does look as if we are trying to form some type of symmetrical triangle, and we certainly did see the market try to break down through the bottom of it during the day. That being said, the market has not seen a significant amount of downward pressure until the last couple of weeks, and I think it needed to digest the massive parabolic gains that we had seen. If we can break above the top of the candlestick for the trading session on Wednesday, then I believe the market will probably go looking towards the 50 day EMA, perhaps even the top of the triangle.
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Keep in mind that the natural gas market tends to be very fickle, and trade on the latest weather report. That being said, it is supposed to get cold again next week, so I would anticipate that natural gas is getting ready to make a turnaround. If we break down below the bottom of the candlestick and perhaps $4.50, that could be rather ugly.
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