Natural Gas Price Forecast – Natural Gas Markets Choppy on Friday

Natural gas markets have gone back and forth during the course of the trading session on Friday, as the jobs number came out much hotter than anticipated and caused quite a bit of choppy behavior across markets in general. Furthermore, the natural gas markets have been back and forth for a while, so it is not a huge surprise to think that perhaps we would struggle to find a bit of grip as to where we go next.

NATGAS Video 05.07.21

To the downside, the $3.40 level should continue to be massive support, as it is where we had broken out of previously. To the upside, the $3.80 level looks to be resistive as well, as we have formed a couple of shooting stars touching that area. With this being said, I think we are still very much in a consolidation area, and it suggests that the $3.60 level is what I would consider to be “fair value” in the current trading environment. Nonetheless, when you look at the longer-term chart, if you take the measured move of the breakout of the consolidation, that extends for a move as high as $4.40.

I do not necessarily know that we get to the $4.40 level, but I certainly think that we are just a bit overbought at this point. As long as we can hold above the $3.40 level, I think you still need to buy dips, but recognize that a lot of the “easy money” has already been made, so therefore you will need to be a bit cautious with your position size and of course your stop loss placement.

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