Natural Gas Price Forecast – Natural Gas Hovers Around Big Figure

Natural gas markets have initially fallen during the trading session on Thursday but then turned around to show signs of strength again. Ultimately, this is a sign that the market is probably going to continue to find sellers above, but we have short-term bullish pressure due to the fact that there is a major storm in the northeastern part of the United States right now driving down temperatures and thereby driving up demand.

NATGAS Video 05.02.21

Underneath, we have the 50 day EMA which I believe is a target, and of course there is a gap that has to be dealt with as well. This is the wrong time of year to expect natural gas to go a lot higher, at least for anything sustainable, so looking at this chart I believe it is simply a “fade the rallies” type of scenario. The $3.00 level above is a major resistance barrier from not only the gap, but the fact that there is a certain amount of psychological significance to that level. It is worth noting that the Tuesday candlestick ended up forming a massive shooting star, so I think this draws a bit of a “line in the sand” for the buyers.

As soon as the storms are gone, traders will probably begin to sell natural gas yet again, due to the fact that there is far too much in the way of supply out there to think that suddenly the dynamics of the market will change. This will be especially true as we start to head into the springtime when it comes to the northern hemisphere.

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