Natural Gas Price Forecast – Natural gas Gapped Lower to Kick Off Week
Natural gas markets have gapped lower to show signs of weakness on Monday, as we have reached towards the $2.90 level. That is an area where we probably can see a bit of support, but if we break down below it then it is likely that the 50 day EMA gets challenged, and then of course we go looking towards the bottom of the gap underneath that has yet to be filled. After all, this is a market that I think continues to see a lot of noisy behavior, but we are looking at the market trying to price and the fact that the temperatures are going to be rising in the northern hemisphere, which of course will drive down demand for natural gas for heating. With this in mind, I think that it is only a matter of time before we do break down significantly.
NATGAS Video 25.05.21
Underneath, when you look at the overall market, you can see that there is even more support near the $2.45 level. That is an area that has been supportive more than once, so I think it is only a matter of time before we would find buyers in that area. If we can break down below there, then we could go looking towards the $2.00 level, an area that is going to be psychologically important to say the least, so with that being the case I think what we are looking at is a scenario where selling will continue until we get towards the end of the summertime, where temperatures will start to drop again, and demand will pick up given enough time.
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