Natural Gas Price Forecast – Natural Gas Markets Pull Back After Gapping

Natural gas markets have gapped higher to kick off the trading session on Thursday but as you can see turned around to fill that gap rather quickly. By doing so, the market looks as if it is ready to continue bouncing around, perhaps waiting to see what happens with the jobs number as to where to go next. All things been equal, this is a market that I think given enough time we will see a breakout in one direction or the other, and as you see on the chart, I have drawn a huge triangle. All things been equal, we are in an uptrend so I would anticipate a break to the upside, but obviously there are no guarantees.

NATGAS Video 05.11.21

The 50 day EMA is starting to reach towards the upside again and has offered support multiple times along the route to this price. I think that it offers a bit of a “dynamic floor” in the market, and therefore you have to look at it through that prism. The natural gas markets continue to see a lot of demand as well, due to the fact that we are entering the caller time of year for the northern part of the United States, one of the biggest consumers of natural gas. Keep in mind that this contract of course is based upon the Henry Hub natural gas markets, which are US-based. With that being the case, even though we are going to rally more likely than not this time a year, I am not looking for some type of move like we have in the European Union.

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