Natural Gas Price Forecast – Natural Gas Markets Continue Resiliency

Natural gas markets have rallied again during the trading session on Tuesday, after initially pulling back to kick off the week. By doing so, it looks as if the market is going to continue to see a lot of volatility, but we are still very much in an uptrend. After all, the market has had the tailwind of a major heat wave in parts of the United States to drive up demand recently, which has led to a massive spike in price when you typically do not see it this time of year.

NATGAS Video 11.08.21

From a technical analysis standpoint, there are a couple of bullish flags underneath that both measure for a move to the $4.40 level, as well as a massive consolidation area below there that also measures for a move towards the $4.40 level above. This has been my longer-term target for a while, and there is nothing on this chart that tells me we cannot get there. That does not necessarily mean we get there straightaway, and that does not necessarily mean that we get there without some type of fight.

Nonetheless, it appears that we are still on the precipice of a “buy on the dips” type of scenario, and even if we were to break down below the $4.00 level, it is possible that we could go looking towards the $3.80 level underneath. That is an area that has been support more than once, so it would make a certain amount of sense that we would have buyers underneath. If we can break above the $4.20 level, I think that is what will open the door to the $4.40 level.

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