Natural Gas Price Forecast – Natural Gas Markets Bounce

Natural gas markets gapped a little bit higher during the trading session on Wednesday but then gave back some gains near the $3.00 level, as it continues to cause quite a bit of resistance. At this point in time, the market looks as if it will probably continue to drift towards the $2.90 level again. Underneath there, that we have the 50 day EMA that could come into place, perhaps opening up a move to finally fill the gap underneath which falls all the way down to the $2.70 region.

NATGAS Video 27.05.21

As we continue to see a lot of noise overall, I believe that the market is trying to figure itself out, staying within the overall consolidation region that I have marked on the chart. Looking at this commodity, it does make a certain amount of sense that we would see a drift lower due to the fact that demand will drop as the temperatures in the United States and Europe arise. That being the case, the market will likely continue to favor the downside as we are still oversupplied, and it should be noted that perhaps we have seen more of a “knock on effect” from the overall commodity boom more than anything else.

To the upside, if we were to break above the recent high, then we could go higher, but I do not think that happens easily. Quite frankly, I think it is much more likely we go down to the $2.45 level, which is the bottom of the larger consolidation region that the market has been in for several months. I expect a lot of choppy behavior, but we are a bit stretched to the upside.

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