Natural Gas Price Forecast – Natural Gas Markets Have Quiet Friday
Natural gas markets have struggled a bit during the trading session on Friday, but it could be more due to exhaustion that than anything else. After all, the market is gone straight up in the air for a while and is testing an area that had been significant resistance during the last surge higher in natural gas pricing a few years ago. At this point, it will be interesting to see how this plays out over the next couple of months, because quite frankly this is a scenario where we are at prices that you typically see in the coldest months of the year.
NATGAS Video 06.09.21
I would suspect that we probably get a little bit of a pullback from here, but that pullback does not necessarily mean that it is the end of the run higher. I think you probably have quite a bit of support near the $4.20 level, and therefore that could be thought of as value that people would be willing to take advantage of. A breakdown below that level could open up a move down to the $4.00 level, which is basically where the 50 day EMA is sitting right now.
To the upside, if we do break above the candlestick from the Thursday hi is, I would be cautious, because although it would be a bullish sign we are most certainly overextended at this point. In that general scenario, I would anticipate that the $5.00 level would be the next target, as it is the next large, round, psychologically significant figure. With this, I think a little bit of patience goes a long way.
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