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Natural Gas Price Forecast – Natural Gas Markets Continue to Press Higher

By:
Christopher Lewis

The natural gas markets continue to press higher during the trading session on Wednesday, but as you can see, we still have plenty of resistance just above.

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Natural gas markets have rallied a bit during the course of the trading session on Wednesday as we continue to see natural gas pressed the top of the overall range of trading. At this point time, it looks as if the $3.20 level will continue to be very difficult to overcome, but even if we do there is resistance after that. All things being equal, the natural gas markets will probably have a bit of a boost due to the knock on effect from the commodity boom, but whether or not natural gas demand actually picks up might be a different situation altogether.

NATGAS Video 10.06.21

We are approaching a cyclically negative time of year, and therefore it is possible that we could see the area just above causing issues, and therefore I think it is only a matter of time before we see selling pressure come back in. If we can break down below the 50 day EMA, then it opens up the possibility of a move to reach down towards the gap underneath that has yet to be filled, near the $2.70 level. Furthermore, the 200 day EMA is starting to bank that area as well.

With that being the case, the market is likely to continue to see a lot of choppy and erratic behavior, but at the end of the day, I am much more comfortable shorting this market due to the cyclical trade in the fact that it is oversupplied. In fact, I believe that if we get some type of blast when it comes to the commodity trade, this will be the first market that shows signs of weakness.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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