Natural Gas Price Forecast – Natural Gas Continues to Drift Lower

Natural gas markets have drifted a little bit lower during the trading session on Wednesday to reach down towards the $2.80 level. This is an area that of course is a large, round, psychologically significant figure, but at the end of the day we also have the 50 day EMA sitting there, which in and of itself will attract a certain amount of attention. Because of this, I think that we could get a little bit of a bounce, but that bounce will be sold into. On the other hand, if we break down below the 50 day EMA on a daily close, then it could open up fresh selling to send the market down to the $2.60 level next.

NATGAS Video 25.02.21

Warmer temperatures are coming to the United States, and that drives on a massive amount of demand for natural gas. Furthermore, the crude oil seems to be the market everyone is paying attention to at the moment, so I think that will continue to steal some of the thunder from this market.

We are also trading the April contract, typically a time of year where demand plunges in the northern hemisphere, which is by far where the market pays the most attention to. With that and the fact that the Texas freeze is now over, should see plenty of more supply coming back online to push prices much lower. I believe that we will go looking towards the swing low at $2.25, possibly down to the $2.00 level. I have no interest in buying this market and look at any rally as a potential selling opportunity at the first signs of weakness.

For a look at all of today’s economic events, check out our economic calendar.