Natural Gas Price Forecast – Natural Gas Markets Continue to Cool Off

Natural gas markets have been very noisy over the last several sessions, as we continue to hang below the $3.00 level. At this point time, the market is likely to see more negative pressure, and if we can break down below the bottom of the trading session from Friday, it is very possible that the natural gas markets could go looking to fill the gap underneath. That has been my call for a while, and as temperatures warm up in the United States and Europe, it makes quite a bit of sense that demand for natural gas will fall.

NATGAS Video 24.05.21

That being said, the biggest problem we have is that the commodity markets in general have been booming. The natural gas markets have got a bit ahead of themselves, but with more of an important point to pay attention to is the fact that the commodity is still oversupplied. Natural gas is abundant to say the very least, and as a result one would think that it is only a matter of time before we would see this market fall due to the supply and demand equation that certainly will come into play.

The Extends all the way down to the $2.70 region, which of course is a large, round, psychologically significant figure which makes sense as this market does tend to move in $0.10 increments. Underneath there, we have the 200 day EMA, so I think that makes a nice target. Longer-term, we could go looking towards the $2.45 level which is the bottom of the larger consolidation region.

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