Natural Gas Price Forecast – Natural Gas Markets Forming Support

Natural gas markets have broken down a bit during the course of the trading session on Tuesday to show further negativity, but we have seen the market turned around to form a bit of a hammer right at the 50 day EMA, and an area that has been supportive previously. If we can break above the top of the shooting star, then it is likely that I would be a buyer to go looking to fill the gap above on the daily chart that started with the Monday open. If we can break above there, then the market is likely to go looking towards the $6.00 level.

NATGAS Video 20.10.21

On the other hand, if we were to break down below the bottom of the candlestick for the trading session on Tuesday, it could open up a move down to the $4.50 level, maybe even the $4.00 level. The $4.00 level for me is the absolute floor in the market, so it will be interesting to see whether or not this actually plays out. The 200 day EMA is sitting right there, so I think that is another reason to think that area will be very important to pay close attention to.

With this being the case, the market is likely to see a lot of volatility, but quite frankly with natural gas being so localized, it will come down to the weather forecasts in the United States. Keep in mind that the Henry Hub natural gas contract, the one that most people trade, is an American contract, and not a European one. In other words, although the European situation with supply causes a certain amount of influence, it is a completely different set of fundamentals.

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