Natural Gas Price Forecast – Natural Gas Continues to Look Bullish

Natural gas markets have initially pulled back to kick off the trading session on Thursday only to turn around and show signs of strength. At this point, the market continues to focus on the heat that is coming to the western part of the United States and creeping into the middle part of the country as well. Because of this, the demand for natural gas should continue to pick up, and that should provide a list for this market. The fundamental situation continues to favor natural gas, but beyond that the technical analysis also suggests that we have further to go.

NATGAS Video 06.08.21

When you look at the previous action, the $2.40 level was massive support, while the $3.40 level was massive resistance. That measures for a one dollar move, which extends for a run towards the $4.40 level above. Furthermore, we also have a couple of bullish flag that measures for the same type of move, so really at this point in time there is no reason to think we will get there. With that being the case, buying dips continues to work, as you can see every time, we consolidate the market shoot straight up in the air.

This is particularly interesting due to the fact that this is typically a soft time of year for demand, as most natural gas is used for heating as far as the market is concerned. That being said, this winter could be nasty for this market. I do think that as soon as the heatwave breaks though, we will see a massive selloff, seeing limit down trading more than once. We are nowhere near that though, so at this point the buyers continue to push the market higher.

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