Natural Gas Price Forecast – Natural Gas Markets Continue to Hover In Same Consolidation

Natural gas markets have gone back and forth during the course of the trading session on Friday as the $3.60 level has offered significant support. By doing so, the market looks as if we are ready to go back and forth and try to figure out where we are going longer term. For what it is worth, you should take a look at the fact that we have been consolidating sideways after a big move to the upside, perhaps forming a little bit of a pause before a move to the upside.

NATGAS Video 19.07.21

To the downside, the $3.40 level should be very supportive, as it is an area that had been the top of the larger consolidation area, and of course we have the 50 day EMA reaching towards it. With that being the case, the market is likely to see a huge fight in that general vicinity, but that is assuming we even get there. Ultimately, we could turn around and break above the $3.80 level to the upside, and then go looking towards the $4.00 level.

After that, it is likely that we could go to the $4.40 level based upon the “measured move” of the previous consolidation area being broken out of, and then we also have the bullish flag that measures to roughly the same thing that has been formed. The heat wave in the western part of the United States continues to be a major driver, so pay close attention to that as well as it drives up the good for the market.

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