Natural Gas Price Forecast – Natural Gas Continues Sideways Action

Natural gas markets have gapped lower to kick off the trading session on Monday as we continue to stay in the same general vicinity. The $2.80 level is a bit of a magnet for price, and therefore it would not be a huge surprise to see this market go back and forth in the short term. However, there are a lot of questions as to whether or not the demand will continue to be enough to satiate the market, as temperatures are rising in the United States now. With this being the case, I fully anticipate that the gap underneath current pricing probably gets filled, opening up a move down to the 50 day EMA, perhaps even lower.

NATGAS Video 27.04.21

Underneath the 50 day EMA, I believe that the 200 day EMA comes into play, which is currently at the $2.60 level. This is the wrong time of year for natural gas to hang on to gains for a significant amount of time, despite the fact that there have been cooler than usual temperatures and of course there is the whole “reopening trade” that everybody is paying close attention to. With that being the case, I think what we have this a nice shorting opportunity setting up as soon as we see either weakness or some type of exhaustion above.

I also see the $3.00 level as a potential resistance barrier that people will be paying close attention to, so I would be willing to sell their as well. I have no interest in buying under any circumstance, so with that being the case simply waiting for a nice opportunity to get short again. I do believe that we go looking towards the $2.00 level.

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