natural gas markets It went back and forth during the trading session on Friday as we continue to see a lot of support at the uptrend line that was part of my triangle on the chart. At this point, the market appears to be struggling to get past the $5.00 level, but if we can, some recovery could begin. Keep in mind though, we’ve seen a weaker structure lately, so it makes sense that we could continue lower. If we do, we’ll start looking at the $4.50 level, and possibly the $4.00 level after that.
Natgas Video 22.11.21
Natural gas markets tend to be very noisy this time of year, as the latest weather report may or may not push prices up. However, it’s also worth noting that as we’re trading the December contract, it won’t be long before we start looking at the spring contracts, which of course will bring a whole different dynamic as temperatures in the US will start picking up again.
Ultimately, this market is likely to be somewhat range bound in the short term, but the question now is whether or not we’ve hit the peak of winter? I know a lot of people cite natural gas issues in Europe, but the truth is that most of the natural gas sold in Henry Hub contracts stays within the US as Ellen G isn’t necessarily easy to move.