The natural gas markets recovered quite significantly over the week, only to recover and show signs of exhaustion. The candlestick is a bit of a shooting star, although the body of the candlestick is a bit too big to make it a real shooting star. That being said, the market should continue to find buyers with sufficient time, but it is evident at this point that we are running out of steam. Quite frankly, the market has gotten ahead of itself as the momentum has stopped. The market pullback makes some sense right now, and I think that’s what we’re about to see. Nonetheless, there should be some value research below.
NATGAS video 09.20.21
The $ 5.00 level will get a lot of attention, as will the $ 4.50 level. The $ 4.00 level for me is the absolute bottom in the market. If we were to collapse below, the market would collapse. All things being equal, this is a market that I think will struggle to climb any higher from here, and even if we turn around and gather together from here, I predict that longer-term traders will focus on the fact that the headlines have gotten a head start on reality. The vertical momentum is running out and therefore the pullback is going to be necessary. That being said, we are offering much higher prices than what we usually are this year, and therefore, I think normalcy comes with enough time, but we clearly have to be careful at this point.