Natural Gas Price Forecast – Natural Gas Continues to Shuffle Around Big Figure

Natural gas markets have rallied just a bit during the course of the trading session after gapping higher, showing signs of their proclivity to hang around the $4.00 level. The $4.00 level of course is an area that would attract a lot of attention as it is a large, round, psychologically significant figure, and of course an area that will cause a lot of headline noise. As you can see of the last couple of weeks, we certainly have a lot of issues to work out in this general vicinity.

NATGAS Video 03.08.21

Natural gas markets continue to get a little bit of a boost due to the idea of more demand coming out the United States, as the heatwave continues to cause issues. Furthermore, from a technical analysis standpoint you can make an argument that this market should go looking towards the $4.40 level anyway, as we had formed a bullish flag previously, which of course measure to that level. After that, the market also had a consolidation area between the $2.40 level and the $3.40 level, which of course measures to a move towards the $4.40 level.

The 50 day EMA is sloping higher, and as a result it is likely that that could also offer a certain amount of support on any type of pullback. The commodity boom in general continues to lift all markets, and the natural gas market of course will not be any different. In general, this is a market that will continue to be very choppy but more likely than not will have more upward momentum than down and as a result I have no interest in shorting this market.

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