Natural Gas Price Forecast – Natural Gas Markets Give Up Early Gains

Natural gas markets have initially rally during the trading session on Tuesday to reach towards a fresh, new high, before turning around and falling straight back down to form a massive shooting star. That being said, the market continues to see a lot of noisy behavior, and we are still very much in a trading range. If we break down below the $3.60 level, then it is possible go looking towards the $3.40 level underneath. That is an area that previously had been massive resistance, and I think should have a little bit of “market memory” built into it. Because of this, I would believe in the idea of buyers showing up in that area, especially as the 50 day EMA is starting to race towards that same region.

NATGAS Video 07.07.21

To the upside, if we can break above the top of the shooting star for the trading session on Tuesday, that would be a very bullish sign and open up the possibility of moving towards the $4.00 level. Ultimately, consolidation underneath should show a potential move all the way to the $4.40 level, but that does not necessarily mean that we get there overnight. Furthermore, I also recognize the fact that part of what has been driving this market is the heat wave in the United States, which of course only has so much of a shelf life. Because of this, I think that we may get the occasional nasty pullback. If we break down below the $3.40 level, then it is possible that we could see a complete turnaround, but right now that is not necessarily something that I expect to see in the short term.

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