Natural Gas Price Forecast – Natural Gas Markets Show Bearish Candle for the Tuesday Session

Natural gas markets have gone back and forth during the course of the trading session on Tuesday to show signs of hesitation as we are most certainly overbought at this point. Quite frankly, this is a market that has been parabolic for quite some time, and with that it is likely that we will continue to see buyers underneath on dips, which is something that is desperately needed for the trend to continue. The $4.80 level has offered a bit of a barrier, but quite frankly this is more about being over bought than anything else.

NATGAS Video 08.09.21

If we do break down from here, I would anticipate that the $4.50 level could offer a bit of support, right along with $4.40. After that, then we have the $4.00 level offering support. That is an area that also attracts the 50 day EMA, so all of this could lead to a “floor the market.” With that being the case, I think that break down below that signifies that the market falls apart. In general, the market is more likely to hit the $5.00 level. The $4.00 level in the short term, especially as we continue to look at the slowing down of refining in the southeastern part of the United States.

Regardless, this is an overbought and parabolic move, and those do tend to get corrected given enough time. Breaking above the $5.00 level would be very unlikely, but if it does happen, I think that probably brings in fresh buying pressure, but to be honest I would prefer to see some type of pullback.

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