Natural Gas Price Forecast – Natural Gas Markets Hover at 50 Day EMA

Natural gas markets have gone back and forth during the course of the trading session on Wednesday, as we hover just above the 50 day EMA. It is also worth noting that the $5.00 level is right here as well, so that in and of itself will capture a certain amount of attention. With that being the case, think that the market is probably going to continue to see more of a “buy on the dips” mentality, and therefore I think it is probably only a matter of time before we get a little bit of value hunting here. That being said, I am a buyer on a break above the top of the candlestick for both Tuesday and Wednesday, expecting the market to go looking towards the $5.50 region.

NATGAS Video 21.10.21

If we were to break down below the Tuesday hammer, that would obviously be very negative but would not have me selling, because quite frankly the market is far too bullish. With that in mind I like the idea of finding more value closer to the $4.50 level, and then again at the $4.00 level where the 200 day EMA and a lot of structural noise will be found. It is not until we break down through all of that that I would consider a downtrend being likely, especially as we head into a seasonally strong time of year over the next several months. With that being the case, I like the idea of buying the dips and finding value as we move along, as it is very likely that natural gas will continue to be very bullish of the next couple of months.

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