Natural Gas Price Forecast – Natural Gas Markets Peek Above 50 Day EMA

Natural gas markets have rallied during the trading session on Tuesday, breaking above the 50 day EMA in order to show signs of strength. By doing so, it looks as if the market is likely to continue to try to reach towards major supply, which I do believe sits just above the $2.80 level. I think it extends all the way to the $3.00 level, so I am looking for some type of exhaustive candle in order to start shorting. Remember, I did suggest that it was possible that we would have another pop higher as we are getting close to the end of the winter season, and therefore it is only a matter of time before a lack of demand comes back into the picture. We are currently trading the February contract, and not too awfully far from flipping over to March.

NATGAS Video 06.01.21

At this point, and simply sitting on the sidelines and waiting for some type of exhaustion in the form of a shooting star or other bearish candlestick in order to start selling yet again. Ultimately, the market is likely to go back down towards the 200 day EMA near the $2.46 level, and then possibly even lower to reach down towards the $2.27 level. Longer-term, I believe that we even go as low as $2.00, but that is probably a story for longer-term trades. I like the idea of fading signs of exhaustion when they are available, but right now we do not quite have the set up yet. Because of this, I think it is simply a “sitting on the sidelines” type of situation.

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