Natural Gas Price Forecast – Natural Gas Markets Continue to Press Three DollarsNatural gas markets continue to be very noisy overall oils will chop around just below the $3.00 level.
Natural gas markets have gone back and forth during the course of the trading session on Thursday as we continue to see the $3.00 level offer a lot of noise. That being said, the market is likely to see this area still offers significant resistance, and therefore I do not like the idea of buying natural gas. Part of what has been pushing this higher has been inflation fears in general, which of course has translated into higher commodity prices across-the-board.
NATGAS Video 14.05.21
That being said, the reality is that natural gas markets are oversupplied with the commodity, so I think it is only a matter of time before you would have to take that into mine. This will be especially true as temperatures warm up finally in the United States and therefore, I think it makes quite a bit of sense that price will go down given just a bit of a push. The $2.80 level underneath is the top of the most recent gap, and therefore I think we will probably go looking towards that area given enough time as gaps do tend to get filled in the commodity markets eventually.
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Underneath, the $2.40 level should be supportive, so having said that I think you need to pay close attention to that area, because if we were to break down below that region it is likely that we go looking towards the $2.00 level. If we do break out to the upside, I am simply going to “let it go”, because I knew sooner or later the cyclical trade comes back into the forefront.
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