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

Natural gas markets have rallied a bit during the course of the trading session on Monday to attempt to overcome the $4.00 level, but as you can see, we have given up quite a bit of the gains in order to show signs of exhaustion again. Because of this, it makes quite a bit of sense that we would continue to see the $4.00 level offer a lot of interest. The market has been moving higher based upon the heat wave in the United States, and of course we have recently bounced from the 50 day EMA a couple of days ago. The market had been in an uptrend, so it does look as if we are trying to save that very same uptrend.

NATGAS Video 24.08.21

If we can break above the $4.00 level, then it is possible that we could go looking towards the $4.20 level again, which has been the most recent high. If we can break above there, then we could go looking towards the $4.40 level, which is the projected target from both a couple of bullish flags, and the longer-term consolidation that we had broken out of at the $3.40 level quite some time ago. Ultimately, natural gas markets are extraordinarily expensive right now, but as long as there is perceived massive demand due to the heatwave, you can at least argue for these levels. Commodity markets have been extraordinarily bullish as well, so there has been a bit of a “knock on effect” from that as well. The US dollar has a certain amount of influence on the market as well, so if it spikes it may drive down the value of Nat gas, and of course vice versa.

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