Natural Gas Price Forecast – Natural Gas Markets Continue to Find Sellers

Natural gas markets have initially rallied during the trading session on Tuesday, breaking towards the $4.10 level. However, we have pulled back from there to show signs of exhaustion and form a bit of a shooting star. The 200 day EMA sits just above and of course will cause quite a bit of psychological resistance anyway, and now it looks like we are simply testing the top of the range that we been in for the last couple weeks. Temperatures in the United States a relatively mild, so this has not been a situation where demand suddenly picked up.

NATGAS Video 29.12.21

To the downside, the $3.50 level seems to be very supportive, but I do think it is probably only a matter of time before we break down below it. Based upon the “measured move” of the descending triangle that had been part of this market previously, the target of course is $3.00, which happens to be an area that the market is very comfortable with from a long-term perspective anyway.

With that in mind, I simply look for signs of exhaustion like we see during the day on Tuesday, as start selling it. I have no interest in buying, and quite frankly do not even know the set of circumstances that would have to appear for me even have that thought currently. We did have a major disruption in the US gas previously, but all of those supply disruptions from the hurricane and the flooding are long gone, and now that gas producers have caught up, there is no reason to think that pricing is suddenly going to strengthen.

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