Natural Gas Price Forecast – Natural Gas Markets Get Hammered Heading Into the Weekend
Natural gas markets continue to rebalance after supply has picked back up in the United States. That being said, we are heading into the colder months a little be interesting to see whether or not we rally. If we can break above the highs of the last couple of candlesticks, then it is likely we go looking towards the $5.50 level. The natural gas markets do typically rally this time a year, and although supply has picked back up we are still below what could be necessary, and therefore it is worth paying close attention to this market.
NATGAS Video 15.11.21
Currently, I see the $4.50 level as a major support level, and as long as we stay above there it is likely that we could break down. Doing so, could open up a significant amount of downward attitude, but I think given enough time we are going to see that anyway, especially as the warmer temperatures come in a few months. Currently, we are trading the December contract, so you would think that a certain amount of demand will still be priced in.
Nonetheless, it is also worth paying attention to the fact that the US dollar has been spiking in value, so that of course can have a certain amount of influence on pricing as well. We are testing the bottom of a majoftriangle, so that is worth looking into. I expect a lot of volatility, but that is nothing new when it comes to the natural gas markets. Keep your position size relatively small, as you can get whipped around.
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This article was originally posted on FX Empire
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