Natural Gas Price Forecast – Natural Gas Markets Gap Higher to Kick Off Week
Natural gas markets have gapped higher to kick off the week, as we continue to see bullish pressure. That being said, the market is likely to continue to go looking towards the $3.80 level, which is an area that has been resistance more than once. That being said, the $3.80 level is a major resistance barrier that we have seen multiple times. By breaking above the $3.80 level, the market is likely to go looking towards the $4.00 level, which obviously will attract a lot of attention.
NATGAS Video 20.07.21
If we do pull back from here, I think that the $3.60 level will offer significant support as we have seen multiple times as well, but if we were to break down below there, then the $3.40 level would be targeted. The 50 day EMA is approaching the $3.40 level as well, so I think it makes quite a bit of sense that we would see supportive action there. All things been equal, this is a market that still remains very bullish, especially as we have the heat wave in the western part of the United States continuing to cause major issues. With that being the case, demand will continue to pick up in general.
If we were to break above the $4.00 level, then I believe that the market may eventually go looking towards the $4.40 level, which is the measured move from the previous consolidation area between $2.40 and $3.40 below. Furthermore, the market is forming a little bit of a bullish flag, which also measures for a move to the $4.40 level, which of course is yet another reason to be bullish.
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