Natural Gas Price Forecast – Natural Gas Markets Ready to Rally

Natural gas markets have rallied a bit during the course of the trading session, testing the top of the overall inverted hammer from Monday. If we can break above there, then it is very likely that we continue to go higher, perhaps reaching towards the $6.00 level. After all, natural gas is not a market that is overly supplied at the moment, because quite frankly we have not seen much in the way of production, and of course there was both the hurricane and the flooding that had a massive influence on production. With that being the case, and the fact that temperatures are only going to get colder, it does make sense that we continue to go higher. In fact, it looks like the most likely of targets will be the $6.00 level, perhaps even $6.50 level after that.

NATGAS Video 03.11.21

The 50 day EMA has offered support a couple of times in a row, so I think that the correlation should continue. That being said, the market would likely continue to pay close attention to this indicator as it is not only obvious, but it is curling higher. Before it is all said and done, I think that it is possible that natural gas hits a fresh, new high sometime this winter.

At this point, it is very unlikely that we would see this market break down below the $5.00 level, which of course is a large, round, psychologically significant figure, and an area that could open up selling down towards the $4.50 level. That is the least likely of scenarios going forward, but at this point in time you have to keep that in the back of your head.

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