Natural Gas Price Forecast – Natural Gas Markets Fill GapNatural gas markets have rallied a bit on Friday to fill the gap that occurred back in November. At this point, exhaustion certainly seems to be setting in.
Natural gas markets have rallied a bit during the trading session on Friday as colder temperatures are forecast for next week in the northeastern part of the United States and of course beyond. However, we are trading the March contract, so there is only a certain amount of bullish behavior left. I anticipate that it will probably rollover from here, perhaps reaching back towards the $2.80 level. There does seem to be a significant amount of resistance not only based upon that gap, but also all the way to the $3.20 level.
NATGAS Video 08.02.21
This is the wrong time of year to expect natural gas to hang on to gains, so unless you are a short-term trader you probably should not be buying this. Yes, it is made relatively impressive gains of the last week or so, but at the end of the day we are running out of cold temperatures to get the market excited. If that is going to be the case, then it does make a certain amount of sense that we will see this market roll back over. Quite frankly, it is a cyclical trade that most traders are aware of self it is more than likely only a matter of time before they begin to sell it. To the downside, I believe that the $2.50 level makes a nice target due to the fact that it is the 200 day EMA, which of course always seems to attract a certain amount of attention in and of itself. I believe that it will be choppy, but it is most certainly exhausted in the short term.
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