Natural Gas Price Forecast – Natural Gas Markets Flirt With Top of RangeNatural gas markets have done very little during the trading session on Tuesday as we are at the top of a significant consolidation range.
Natural gas markets have gone back and forth during the course of the trading session on Tuesday, as the market is likely to find a little bit of trouble here at the top of the most recent consolidation range. The market has recently been keying off of the short-term temperatures in the United States, which the natural gas market is notorious for doing. The reality though is that sooner or later the warmer temperatures will start to weigh upon the price of natural gas, and therefore I would anticipate that the downtrend should continue, as the oversupply of natural gas will continue to be a major issue.
NATGAS Video 21.04.21
The 200 day EMA is near the $2.58 level, and I think it is likely that we will go looking towards that level given enough time. There is a small gap underneath but at the end of the day that Is probably something that gets broken through rather quickly. Even through all of that, even if we break above the last couple of days, I still am looking for selling opportunities because of the cyclical dynamic of natural gas markets that we see this time of year. The $2.88 level above is a major resistance barrier as well, so with that being the case I think it is only a matter of time before sellers command. I am simply looking for some type of exhaustive candle to get involved. Yes, it has been a nice rally, but this is more about the overall commodity rally than any real demand. The first cracks in the ice when it comes to commodities will send this market much lower.
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