Natural Gas Price Forecast – Natural Gas Continues Sideways MovementThe natural gas markets have gapped to kick off the Monday session, but essentially has done nothing since then. This makes sense, as it is limited electronic trading during Memorial Day.
Natural gas markets have gapped to kick off the trading session on Monday, and then simply went back and forth. The market is above the $3.00 level, an area that of course would attract a certain amount of attention due to the fact that it is a large, round, psychologically significant figure. The market sees a significant amount of noise all the way to the $3.20 level, where we have seen quite a bit of selling pressure above.
NATGAS Video 01.06.21
To the downside, the $2.90 level offers support, as we have seen multiple times over the last couple of weeks and now, we have the 50 day EMA reaching towards it. With that being the situation, I believe that the market will continue to go sideways overall and eventually make more of an impulsive move. Sooner or later, we will get a candlestick that we can follow, and I think if we can break down below the 50 day EMA, then it is likely that the market goes towards the $2.70 level underneath which is where the gap sits. We have yet to fill that gap, which is something we almost always do in the futures market, so I do think that it is only a matter of time before we break down based upon that alone.
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Adding influence to the downside will be the warmer temperatures coming to the United States eventually, but I must admit that it has taken a while for that to show up in certain parts of the country. That being said, eventually we will see demand destruction, despite the fact that there is demand for LNG overseas.
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