Natural Gas Price Forecast – Natural Gas Markets Testing 50 Day EMA

Natural gas markets have shown themselves to be rather resilient during the trading session, as we initially gapped higher, pulled back to test the previous downtrend line of the rising went, and then bounced again. At the moment, it looks as if the market is sitting just below the 50 day EMA, which of course will attract a lot of attention. That being said, if we were to break above the 50 day EMA then I believe natural gas will continue its bullish move.

NATGAS Video 25.11.21

Temperatures in the northeastern part of the United States continue to plunge, so that does drive up demand for natural gas, and if we get some type of major cold snap, that could really get things going. That being said, we had already ran to extreme highs not seeing in several years over the last couple months, so whether or not we have a lot of momentum to the upside is more than likely going to be a completely different and open question. If we break above the 50 day EMA, then I anticipate that the $5.50 level will probably end up being a target.

On the other hand, if we break down below the bottom of the candlestick for the trading session on Wednesday, then I think it is very likely we go looking towards the $4.75 level, which is essentially the bottom of this wedge that I have drawn on the chart. At this point though, I would point out that Thursday is Thanksgiving in the United States, so it is going to be basically algorithm trading all day.

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