Natural Gas Price Forecast – Natural Gas Markets Pulls BackNatural gas markets have pulled back just a bit during the course of the trading session on Thursday as it looks like the $3.00 level is going to continue being major resistance.
Natural gas markets have pulled back again during the trading session on Thursday as we continue to see the $3.00 level offer a significant amount of resistance. At this point, it looks like the natural gas markets have ran into a major resistance barrier and supply region. At this point, the market is likely to look at the $2.90 level as a bit of a “trapdoor” that could open up a move down to the 50 day EMA, perhaps even down to the That we see underneath. The $2.68 level is the bottom of that gap, and I think it is more than likely going to continue to attract a lot of support.
NATGAS Video 21.05.21
That being said, the market were to break down below there, then it could send this market down towards the 200 day EMA, possibly even down to the bottom of the overall trading range which is closer to the $2.45 level. The market clearly is struggling to continue to go higher, and of course you have to think that the market will start to focus on the fact that demand is dropping. With that being the case, I continue to look for selling opportunities on a breakdown below that support level just under where we currently sits. I recognize that we will continue to see a little bit of a commodity boom, so that of course will be felt over here as well. That being said, natural gas simply has far too much in the way of supply for it to continue going higher for any great length of time as temperatures rise in the northern hemisphere, driving down demand.
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