Natural Gas Price Forecast – Natural Gas Continues to Test Big Figure
Natural gas markets have fallen a bit during the course of the trading session on Wednesday, as we continue to look at the $4.00 level as a major magnet for price. The market has been very noisy in this general vicinity and therefore I think we continue to see a lot of choppy behavior. After all, we have the heat wave in the United States continuing to cause issues, and therefore think it makes quite a bit of sense that we would see demand picking up, but at the same time we had been a bit overextended.
NATGAS Video 12.08.21
To the downside, the $3.80 level should be supportive, especially now that we have not only seen the market test that level and bounce, but also that we have the 50 day EMA reaching that same area. Nonetheless, the $4.00 level continues offer a lot of interest as well, and we are most certainly in an uptrend. With that in mind, I think that we could go looking at the 4,20$ dollars level, and then towards the $4.40 level, which is what some of the technical analysis does suggest.
When you look at the recent rally, you can make an argument for a couple of bullish flag is being printed, both of which measure for a move to that area. Beyond that, the previous consolidation area underneath between $2.40 and $3.40 measures for a move towards the $4.40 level as well. In other words, we still have a little bit further to go but we have almost fulfilled the targets of three definitive technical analysis signals.
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