Natural Gas Price Forecast – Natural Gas Markets Show Signs of Strength

Natural gas markets have gapped a little bit higher during the open on Friday, then the market does continue to look as if it is ready to go to the $4.00 level. The $4.00 level has been like a magnet for price and of course it is an area that would cause quite a bit of attention, and of course headline risk. Recently we have seen this market bounce around between the $3.80 level and the $4.20 level, and the market looks as if it is trying to stay within that range after the action on Friday. Furthermore, the Thursday candlestick was a hammer right at the 50 day EMA, so it all lines up quite nicely.

NATGAS Video 23.08.21

When we are looking at this chart, it is very likely that the uptrend should continue, especially if we continue to see the heat in America because demand pick up. There has been an argument recently that the overall demand for commodities will continue to strengthen, but we have seen that change quite a bit in the last week or so.

Obviously, the market is going to continue to see a lot of noisy behavior, but I think at this point in time we are simply going to try and stay within the previous range. If we can break above the $4.20 level, then it is likely that the market goes looking towards the $4.40 level, especially as we have a couple of bullish flags underneath that have been measuring for that move, and of course the previous consolidation area between $2.40 and $3.40 also measures for that move. With that in mind, the move higher makes quite a bit of sense.

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