Natural Gas Price Forecast – Natural Gas Markets Pull Back Toward Support

Natural gas markets initially tried to rally during the trading session on Monday but found a little bit of support near the $5.40 level before stabilizing a bit. That being said, the market is likely to see this area act as important, but even if we break down below the bottom of the candlestick, it is likely that we could go looking towards the $5.00 level underneath. That of course will attract a lot of attention and it also has the 50 day EMA attached to it. Because of this, I think there are plenty of reasons to believe value hunters would come back into this region.

NATGAS Video 12.10.21

If we get that pullback, I think a lot of value hunters come back into the market to take advantage of what has been a very strong move. I would also believe that a move above the $5.80 level brings in more buyers as well. All things been equal, this is a market that will continue to be noisy, especially as we are looking at the severe shortage of refining capacity and massive amounts of demand around the world causing a bit of a “knock on effect” on this market.

I do believe that given enough time we will probably continue to run upward momentum, especially if we get some type of massive cold streak coming this winter. All things been equal, this is a market that continues to have plenty of reasons to drive it higher, and quite frankly I think that will be the story this winter, but right now we need to be cognizant of the fact that we could get a little bit of a pullback. That should be looked at as an opportunity.

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