Natural Gas Price Forecast – Natural Gas Markets Stall

Natural gas markets have stalled a bit during the course of the trading session on Thursday as we continue to see the $3.00 level above offering resistance, and of course it is likely that we will continue to see that area offer significant selling pressure. At this point in time, we still have to pay attention to the gap underneath that has yet to be filled, and therefore I think that is probably what futures traders will be looking at.

NATGAS Video 30.04.21

Natural gas markets have gotten far ahead of themselves, so at the very least we are looking at a potential pullback. I think the gap down at the $2.70 level will eventually be targeted, but it may take some time to get there. Nonetheless, even if we did reach down to that area, the reality is that the pullback to that gap would simply be a roughly 50% Fibonacci retracement level, so even if you are bullish of this market for some reason, the reality is this pullback would be good for the longer-term health of the uptrend.

I do believe that natural gas will eventually get hammered due to the idea of warmer temperatures coming, and of course the fact that we have so much in the way of oversupply from a longer-term standpoint, makes sense that we will eventually fall. At this point, I just do not have any interest in trying to buy natural gas as we head into the warmest time of the year, and ultimately this is a tuition where the cyclical trade comes into play, as seen almost every year.

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