Natural Gas Price Forecast – Natural Gas Markets Stabilize

Natural gas markets have gone back and forth during the course of the trading session on Friday, just as we have seen all week. Ultimately, I think this is a market that will continue to see a lot of noise, with the $2.60 level offering a little bit of short-term support. That being said, I do think that any rally that we get from here will be sold into, and that is exactly what I am waiting to see happen. If we do get a break to the upside, I am simply looking for some type of exhaustion to get involved with. The 50 day EMA could be one of the catalysts, but I also see the $2.80 level as a potential resistance barrier, right along with the $3.00 level.

NATGAS Video 15.03.21

To the downside I believe that the market breaking below the $2.60 level could send this market looking towards the $2.40 level, maybe even the $2.30 level. Breaking down below that level then opens up a huge move to the downside. All things being equal, this is a market that is going to suffer at the hands of a lack of demand now that winter is over and it is starting to warm up in the northern hemisphere, so therefore I think we are probably best served looking for selling opportunities and ignoring any buying signals. Ultimately, I think that regardless of what happens in the economy, the fact that we have so much natural gas out there will continue to be one of the biggest problems trying to trade this market to the upside.

For a look at all of today’s economic events, check out our economic calendar.