Natural Gas Price Forecast – Natural Gas Continues to Flirt with $3.00 in General

Natural gas markets have drifted a little bit lower during the trading session on Thursday as we continue to see the market hang around the $3.00 level. Ultimately, this is a market that I do believe eventually will continue to see a lot of pressure, and therefore it is possible that we continue to have a lot of questions. Ultimately, this is a market that I think will go looking towards the 50 day EMA at the $2.90 level. That is an area that has been supportive more than once, so therefore it makes quite a bit of sense that it would continue to be the case going forward.

NATGAS Video 04.06.21

I think at this point in time it is likely to see a lot of volatility, and people worry about whether or not there is going to be enough demand. After all, temperatures in the northern hemisphere are starting to rise but at the same time we also have the commodity boom in general, so that may have a little bit of a “knock on effect” in this market, but at the end of the day this is a market that I do think is getting stretched and cyclically typically does not do very well at this time of year.

There is obvious major resistance above at the $3.20 level, and we are essentially stuck in this overall range. All things been equal, this is a market that I do think breaks down as soon as hotter temperatures arrive in the United States, and perhaps the first cracks in the commodity boom could be the catalyst as well and is without a doubt the natural gas markets are by far the most fragile.

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