Natural Gas Price Forecast – Natural Gas Markets Rally at 50% Fib

Natural gas markets have rallied a bit during the course of the trading session on Thursday as we approach the 50% Fibonacci retracement level. As things stand right now, the 50 day EMA is starting a resource the 61.8% Fibonacci retracement level as well, so I do think that it is only a matter of time before we see some type of recovery. After all, the market is very bullish, but had gotten way ahead of itself. Because of this, the market will more than likely continue to look for buying opportunities, as a parabolic market typically will find buyers given enough time on a pullback.

NATGAS Video 24.09.21

Value hunters are out there, and the fact that we are broken above the top of a very neutral candlestick from the previous session, it is possible that we could go higher. At this point, it is not until we break down below the 61.8% Fibonacci retracement level that I think the pullback is something to be crucial. We still have a lot of the supply constraints, and of course we have colder temperatures coming relatively soon in North America. With all of that being tied together, it does make sense that we stay somewhat elevated.

That being said, as soon as the supply chain gets somewhat normalized, I suspect that we will see the mother of all selloffs. We are nowhere near that right now, especially as the European Union is running short of natural gas currently. With this, I think it is a market that we will continue to see a “buy on the dips” type of attitude out there. This is a market that is almost impossible to short at this point.

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