Natural Gas Price Forecast – Natural Gas Markets Looking for Support

Natural gas markets have fallen just a bit during the trading session on Wednesday to reach down towards the $2.65 level. At this point, the market is likely to continue to see a lot of selling pressure in general, as we are starting to get towards springtime, which drive down demand in the northern hemisphere when it comes to natural gas. In general, this is a time of year where you start to see a lot of negative pressure. The 200 day EMA underneath would be an area that people pay attention to, so the fact that we would bounce from here would not be a huge surprise. All things been equal though, I would be a seller of signs of exhaustion just above, and especially near the 50 day EMA, and the $3.00 level. In fact, this time a year I have a hard rule never to buy natural gas.

NATGAS Video 11.03.21

To the downside, the market is likely to go looking towards the $2.40 level initially, and then possibly even the $2.00 level. That being said, the market will not go directly to one place or the other without taking some type of break. I think that is what this short-term bounce is going to be, simply a break in the selling of this market, as the cyclical trade almost certainly is going to be a major influence in this market. In fact, it is probably not until about October that I would consider buying this market, so it is simply looking for a break down or some type of exhaustion after a bounce that I am looking to get involved.

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