Natural Gas Price Forecast – Natural Gas Markets Pull Back to Kickoff Week

Natural gas markets have fallen rather hard during the trading session on Monday, as we have seen a bit of profit-taking, as we are sitting just above the $4.05 level as a write this article. The $4.00 level of course would be significant psychological support, especially considering that there is a gap there. Underneath there, then I believe that the next barrier of support extends all the way down to the $3.80 level. As things stand right now, I have no interest in trying to short this market anytime soon, especially as the 50 day EMA could very well reach towards the $3.80 level relatively soon, offering a bit of a supportive floor.

NATGAS Video 10.08.21

To the upside, the $4.20 level is significant resistance, and if we can break above there then I think we can finally fulfill the $4.40 target that I have been focusing on due to the pair of bullish flags and of course the consolidation area that we had formed between the $2.40 level and the $3.40 level. There is no sign on this chart that tells me we should be selling, especially if temperatures continue to rise in the United States.

Granted, we are bit overextended and there are concerns about the reopening trade now that the Delta variant has people concerned about whether or not we may have less demand for energy overall, but I do not think that we are at that point yet, and therefore I do believe that the buyers will reappear on some type of dip that offers support that we can take advantage of. I will simply wait to see that supportive action before I get long again.

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