Natural Gas Price Forecast – Natural Gas Markets Finding Support

Natural gas markets have drifted a little bit during the course of the trading session on Friday, reaching down towards the $3.90 level underneath, which is an area where we have seen a lot of support previously, and therefore it is likely that we turn around and show signs of life. If the market was to go back and forth in this area, it makes quite a bit of sense that noisy behavior continues to be a major factor in this market, as we are sitting near the $4.00 level.

NATGAS Video 16.08.21

The $4.20 level above is a significant resistance barrier, and if we were to break above there then I think natural gas could continue to go towards the $4.40 level, which has been the target all along. There have been a couple of bullish flag that measures for a move to the $4.40 level, and there is also the previous consolidation region between the $2.40 and $3.40 which also measures for the same move.

As the heat wave in the United States continues, that will cause some issues as far as supply and demand is concerned, and as a result it is likely that we would see more of a “buy on the dips” type of mentality. I think ultimately this is a market that will try to fulfill the targeting of $4.40, but after that things get a little bit dicey and I would be waiting for any significant signs of resistance or exhaustion, as an opportunity to start selling again. However, there is nothing on this chart that suggests that we are going to do that in the short term.

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