Nat Gas Could Break Trend Soon

Natural gas prices have had a massive rally of about 80% this year. The price action appears to be rejecting a couple of long-term Fibonacci levels and is now just above the support line that has held nat gas prices up all year. Will the rally continue into next year? Or will we see a correction soon?

After a roughly 80% rally, I think some commodity traders might be willing to take some profit if the price dips below support.

Personally, I would take profit myself at the breakdown of support. But if the price rebounds and climbs back up around the Fib levels, then I would reevaluate a possible reentry based on technical and macroeconomic factors.

Nat gas prices depend on supply and demand, just like all other commodities. Colder or warmer than average winter seasons can impact demand and essentially the price of nat gas. Will the rest of this winter season accomidate nat gas investors? Or will it be warmer than usual?

Also, be weary of any other supply shocks that could affect prices. Like Russia shutting off gas exports or gas refinery or pipeline explosions.

As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you vant afford to lose. Give some of your investments time and know when to cut your losses.

Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.