Natural Gas Price Forecast – Natural Gas Markets Pull Back on Tuesday

Natural gas markets initially tried to rally during the trading session on Tuesday but gave back the gains as the $3.80 level has been significant resistance. All things being equal, the market is likely to continue to see a lot of back and forth, especially as we start paying attention to the heat wave in the West part of the United States. That being said, you could make an argument for a little bit of a bullish flag and breaking above the top of the recent consolidation area could send this market as high as $4.40.

NATGAS Video 14.07.21

That being said, the market is likely to continue to be very choppy and noisy, but with perhaps a little bit of an upward tilt. To the downside, the market looks at the $3.40 level with interest, as it was the previous resistance barrier that we broke out of to continue the uptrend. The 50 day EMA is starting to reach towards that level as well, so at that point in time I believe that the $3.40 level becomes the “floor the market.” As long as we can stay above there, I think you have to lean towards the upside in this market.

That being said, natural gas is an oversupplied market from the longer-term standpoint, so I think it is only a matter of time before we see selling pressure yet again. However, in the short term I think that we continue to see more or less a “buy on the dips” type of situation, as we continue to see plenty of demand in the short term.

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