Natural Gas Price Forecast – Natural Gas Markets Stabilize at $3.20

Natural gas markets have shown themselves to be very noisy, as we dropped towards the $3.20 level to kick off the Wednesday session. That being said, the market has shown itself to be rather resilient near the $3.00 level, as we have turned around and bounce a bit. That being said, there is a lot of noise between here in the $3.40 level, which breaking above that would be an extraordinarily bullish turn of events. At that point, the market would almost certainly try to go looking towards the $4.40 level based upon the measured move of $1.00, as the consolidation area measures the same distance.

NATGAS Video 17.06.21

To the downside, if we were to break down below the $3.00 level, then it is possible that we could see a significant drop from here, but right now I think we are trying to determine whether or not we can break out. All things been equal, the market should continue to show itself as being rather resilient, as the buyers are most certainly in control at the short term timeframe. However, a lot of what we are seeing here could be a bit of a “knock on effect” when it comes to commodities as the entire commodity market itself has been bullish so it would make sense that perhaps people are looking to take advantage of that in one of the most beaten up energy markets.

To the downside, if we were to break down below the 50 day EMA, then it is possible that we could go looking towards the gap underneath which is closer to the $2.70 level. I do believe that happen sooner or later, but the question now is whether or not we break out in the meantime or if we need to pullback in order to fill that gap? Right now, it certainly looks like the buyers are probably going to get there way, but until we clear the $3.40 level it is not confirmed.

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