Natural Gas Price Forecast – Natural Gas Markets Sluggish

Natural gas markets have gone back and forth during the trading session on Friday, as we continue to hang around where the gap had formed a couple of weeks ago. With that being the case, I think we need to see some type of impulsive move to put money to work. I prefer to short this market on signs of exhaustion after a move to the upside, and therefore I am sitting on the sidelines and waiting to see some type of opportunity.

NATGAS Video 29.03.21

The 50 day EMA above should offer resistance near the $2.70 level, as it is sloping lower and therefore should continue to be a bit of a technical barrier. We have warmer temperatures coming to the northern hemisphere in the short term, and it is very likely that we are going to continue to see sellers come in and punishing market that is far too oversupplied.

To the downside, the market is likely to go looking towards the $2.25 level, and then eventually the $2.00 level underneath. I have no interest in buying natural gas because of the supply/demand dynamics from a longer-term standpoint, so I simply look for an opportunity to get short again. The recent noise from the Suez Canal having been plugged up has had an effect on the LNG market, but that is going to be short-lived at best. All things being equal, this is a market that I think will continue to offer plenty of opportunities if you are patient enough to take advantage of them when they occur. The bounce more than likely is something that is needed just due to the fact that we are oversold, nothing more than that.

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