Natural Gas Price Forecast – Natural Gas Markets Open Up Week With a Bang

Natural gas markets initially fell during the course of the trading session on Monday, but then turned around to rally towards the $3.80 level yet again. Ultimately, if the market can break above the shooting star which is the most recent high, then it could take off to the upside, perhaps kicking off a breakout of a bullish flag as you can see on the daily chart. That flag measures to the $4.40 level, just as the consolidation area that we had recently broken out of does. Because of this, I think the market is trying to tell us where it wants to go. Obviously, the $4.00 level above will cause a certain amount of resistance based upon the large, round, psychological nature of the number.

NATGAS Video 13.07.21

To the downside, if we were to break down below the $3.40 level and of sensibly the 50 day EMA, then it would negate all of this making this potential bullish flag what is known as a “throw over”, when a market breaks above a trendline or resistance barrier only to break back down. Ultimately, this is a market that continues to see a lot of noise, so therefore I think you need to pay close attention to the heat wave in the western part of the United States, as it has been a major driver of natural gas demand in general. That being said, the market is likely to continue to see demand coming out of that part of the country as the biggest factor. Furthermore, we also have the reopening trade which has driven up demand for energy overall around the world.

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