Natural Gas Price Forecast – Natural Gas Markets Continue to Suggest Weakness

Natural gas markets have fallen significantly during the trading session on Thursday to break below the $3.00 level again as we have rolled over into the July contract. At this point, the market is likely to go looking towards the $2.90 level that is an area that should be supportive, especially as the 50 day EMA is reaching towards that area. At this point in time, the market is likely to see a lot of support, but if we can break down below that 50 day EMA it is very likely that the market goes looking towards the gap underneath which is closer to the $2.70 level.

NATGAS Video 28.05.21

Underneath there, then we could go looking towards the 200 day EMA and then possibly the $2.45 level as it is the bottom of the overall range. I have absolutely no interest in trying to buy this market, because quite frankly we are so close to the hottest times of the year and while that does bring up a certain amount of demand, it is nothing like what we typically see during the winter months, so with that being the case I like the idea of shorting as the cyclical trade typically works against the value of natural gas this time of year.

I do not necessarily think that we are going to break down below the bottom of the overall consolidation range but given enough time it is possible that we would see that try to happen. If it does, that would obviously bring in even more selling pressure, but right now I just do not see that being the case.

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