Natural Gas Price Forecast – Natural Gas Markets Stabilize

Natural gas markets initially fell during the trading session on Thursday but then turned around to show signs of strength. The $3.60 level is an area that has offered a bit of support recently, as we have been going back and forth. That being said, the market was to break down below the lows of the trading session on Wednesday, then it is likely that the market goes looking towards the $3.40 level.

NATGAS Video 09.07.21

The $3.40 level of course was an area that was significant resistance, as it was the top of a larger consolidation region. At this point in time, the market breaking down below there would send the market crashing into the consolidation area. All things been equal though, that consolidation area did measure for a move towards the $4.40 level, which of course we have not had yet.

At this point in time, the market is likely to continue to see somewhat bullish pressure due to the fact that we have a bit of a commodity boom going on and therefore it does make a bit of sense that we could continue a little bit. All things being equal, the market is oversupplied from the longer-term standpoint, but at this point it is obvious that we are focusing on the commodity boom and of course the heat wave that has been going on in the western part of the United States has an effect as well. All things been equal, this is a market that I think stays bullish as long as we stay above that $3.40 handle.

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