Natural Gas Price Forecast – Natural Gas Markets Continue Sideways Action

Natural gas markets have initially fallen during the trading session on Thursday but then turned around to form a bit of a hammer which is being contradicted by the shooting star from the previous session. In other words, we are essentially sitting at a level that is going to make quite a bit of sense, as the market is likely to see questions asked about whether or not we can continue to go higher. On one hand, we have the heat wave in the western part of the United States driving up demand, but at the same time we also have to worry about the fact that natural gas is plentiful from the longer-term standpoint.

NATGAS Video 16.07.21

Looking at the chart, the $3.40 level underneath has shown itself to be important, and therefore I think it will end up being the “floor the market” as it was previously a massive resistance barrier that we broke out of. Furthermore, the 50 day EMA is reaching towards that area which could also offer a significant amount of support as well. With that being the case, the market is likely to continue to see a lot of buying pressure in that area, so therefore if we were to break down below there, it would be an extraordinarily negative turn of events. Ultimately, this is a market that is short-term bullish and has been forming a bit of a bullish flag, which measures for a move to the $4.40 level. That being said, I still favor buying short-term dips, at least until something changes with the weather situation out West.

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