Natural Gas Price Forecast – Natural Gas Continue to Press Top of Range
The natural gas markets have rallied again during the course of the trading session on Thursday, gapping higher to kick off the trading day. That being said, the $3.20 level above continues offer resistance that extends to the $3.30 level. At this point, this is a market that I think will continue to struggle a bit but given enough time I fully anticipate that we will have to come up with a bigger catalyst to finally break out or break down.
NATGAS Video 11.06.21
To the downside, I anticipate that the $3.00 level should be a significant amount of support, based upon psychology if nothing else. However, the 50 day EMA is sitting at the $2.93 level, and it will attract a certain amount of attention as well. Underneath there, the $2.90 level would be the next support level. If we break below there, then we will fall apart. At this point, I have to wonder whether or not we are trying to form some type of “double top” in this general vicinity?
Having said, if we do break out to the upside then it is possible that we could go looking towards the $3.30 level, where we have seen significant selling in the past as well. Quite frankly, I do not have any interest in buying natural gas if for no other reason than if I am going to buy commodities, I would buy something that has a little bit more in the way of fundamental help, perhaps the crude oil markets. I think this is a market that will eventually break lower and could be the first sign of a commodities market rolling over in general.
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