Natural Gas Price Forecast – Natural Gas Continues to Build Base

Natural gas markets have initially fallen during the trading session on Tuesday as we continue to see a lot of noise overall. The natural gas markets are dealing with the recent selloff by trying to stabilize in this general vicinity. That being said, if we turn around and rally from here, I believe it is only a matter of time before we get an opportunity to start selling again. After all, temperatures in the United States and Europe are going to continue to climb, and that of course should drive down demand for natural gas overall.

NATGAS Video 24.03.21

Keep in mind that natural gas is oversupplied so it is only a matter of time before we see selling pressure again. The 50 day EMA above at the $2.70 region is where I would anticipate quite a bit of selling pressure, and therefore I like the idea of fading signs of exhaustion in this general vicinity. The $2.80 level above is even more resistive, so at that point I would sell as well. I do believe that eventually we go down to the $2.25 level again to test that support barrier, and that eventually drop down to the $2.00 level which is my longer-term target. This time a year is typically very negative for the market, but we have fallen so far that a bounce makes quite a bit of sense. At this point though, I think that you are simply looking for an opportunity to sell again, as the trend will be firmly ensconced going forward into the springtime and summertime.

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