Natural Gas Price Forecast – Natural Gas Markets Stabilizing

Natural gas markets have fallen a bit during the trading session on Tuesday but ever so slightly. That is not a huge surprise, we have been dropping for five days now, and one would have to assume that as we approach the 200 day EMA, there is probably going to be a certain amount of psychological support involved. That being said, I believe that this is a market that we are going to have to look for rallies to start selling into, as the demand for natural gas is certainly going to start dropping again.

NATGAS Video 10.03.21

After all, the northeastern part of the United States is currently enjoying some of the warmest temperatures on record, and of course the spring is coming soon, as it officially kicks off a week from Saturday. This brings in warmer temperatures, and that of course destroys demand. Yes, I recognize that there is the “reopening trade” out there, but most traders are focusing on metals and petroleum. Natural gas is essentially traded as a heating energy, and of course this is a market that is massively oversupplied in North America, so that puts a bit of a drag on pricing regardless. That being the case, I like the idea of fading short-term rallies, especially near the 50 day EMA which is currently at the $2.77 level. As far as buying is concerned, I probably will be bothered again until October when we start to focus on colder temperatures again. I believe that the “ceiling in the market” is the $3.00 level.

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