Natural Gas Price Forecast – Natural Gas Markets Sitting at 50 Day EMA

Natural gas markets went back and forth during the course of the trading session as we continue to see the 50 day EMA offer resistance. That being said, I think that it is only a matter of time before we have to make a bigger decision. That being said, I believe that the area just above will continue to cause some issues even though we have colder temperatures coming to the United States later in the month. After all, we are already starting to trade the March contract, so at this point in time I believe that rallies are still more than likely going to attract sellers.

NATGAS Video 11.01.21

The $3.00 level above is an area that not only is a large, round, psychologically significant figure, but it is also an area where we have a gap that has yet to be filled. Between those two things, I think that it will more than likely continue to offer resistance, and as we are starting to get towards that part of year where demand for natural gas will naturally plummet. That being the case, I think that we will continue to be somewhat range bound, followed by a plunge over the next couple of weeks. To the downside, the 200 day EMA sits at the $2.47 level, an area that will continue to look interesting, extending down to the $2.40 level as a target. Given enough time though, I believe that this market goes looking towards the $2.00 level, which was the scene of the major breakout as we headed into the winter contracts.