Natural Gas Price Forecast – Natural Gas Markets Continue to Test Bottom of Triangle

Natural gas markets have dropped a bit during the course of the trading session on Wednesday, as we continue to see a lot of noisy behavior in general. Ultimately, I think this is a market that will eventually find a reason to get buyers involved, although it is worth noting that there are a couple of warm days happening in the northeastern part of the United States.

NATGAS Video 18.11.21

Eventually, LNG pressure will continue to be a major driver, but at this point in time it is likely that we will see more noisy behavior than anything else at this point, so I think the market probably continues to be more back-and-forth than anything else. If we can turn around and break above the highs of the session on Tuesday, then that would open up quite a bit of potential buying pressure to reach towards the $6.00 level.

As for myself, I think there are plenty of reasons to think that natural gas continues to climb so that is how I am playing this market. I simply look for short-term dips like we just got and play the bounce. Longer-term, I think that we probably have several weeks’ worth of bullish pressure ahead, so I think it is only a matter of time before we continue to fill out this triangle. However, if we were to turn around a break down below the $4.50 level, that could be a relatively negative turn of events, perhaps reaching towards the $4.00 level.

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