Natural Gas Price Forecast – Natural Gas Markets Have Choppy Session
Natural gas markets went back and forth during the course of the trading session on Tuesday as the $4.00 level continues to cause quite a bit of noise. The market does tend to pay close attention to round figures like this, so it is most certainly worth paying close attention to. Having said that, we have broken through it a couple of times, so it should not be a huge surprise if we do so again. At that point, I would anticipate that the market goes looking towards the $4.20 level above, an area that has offered quite a bit of resistance.
NATGAS Video 25.08.21
To the downside, if the market was to break down below the 50 day EMA, it is possible that we could go looking towards the $3.50 level, which is an area that had been significant support previously. That being said, this is a market that is trying to figure out whether or not it is going to continue to go higher, or if it is going to break down finally? I think at this point in time you should recognize that we have seen a lot of strength in this market, but we have seen a lot of commodity markets go back and forth, and at this point in time it is likely that we are getting a bit overextended.
To the upside, if we do break above the $4.20 level, then it is possible we could go looking towards the $4.40 level after that. One thing I think you can take away from this is the fact that it is going to continue to be very choppy, so even mind that you should keep your position size relatively small.
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