Natural Gas Daily Price Forecast – Natural Gas Markets Pull Back Yet Again

Natural gas markets have fallen a bit during the course of the trading session on Thursday as we continue to see the $4.00 level offer a bit of a magnet for price. As temperatures in the United States continue to be very hot, it makes sense that demand is picking up for natural gas, but at the end of the day we may have gotten a bit overextended.

NATGAS Video 13.08.21

Underneath, I see the $3.80 level as a significant support level, as well as previous resistance as we had formed a little bit of a bullish flag. The 50 day EMA is racing towards that area and therefore I think it is only a matter of time before the buyers will jump in. To the upside, the $4.20 level offers a significant amount of resistance, as the market has pulled back from there couple of times. If we clear that area, then it is likely that we go looking towards the $4.40 level, which is the measured move of the last couple of bullish flag. Furthermore, we also have the consolidation underneath between the $2.40 level and the $3.40 level that measures for a move to that very same $4.40 level.

The market does look a little bit soft, so I think it is only a matter of time before we jump in and find buyers given enough time. This is a market that looks threatened, but only from a short-term standpoint as natural gas has been one of the better performers in the commodity complex. With that being the case, I simply wait for an opportunity at lower levels to pick up a bit of value.

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