Natural Gas Price Forecast – Natural Gas Markets Testing Four Dollars

Natural gas markets have fallen initially during the trading session on Wednesday but found buyers to turn things around and show signs of strength again. As we are testing the $4.00 level, it is likely that we will continue to see this area caused a bit of reaction, as it has essentially been “fair value” over the last couple of months. That is an interesting market, because there has been a massive heat wave in the United States, driving up prices during a time of year that is typically somewhat softer natural gas.

NATGAS Video 26.08.21

At this point, I think we are looking at a situation where the market could rise all the way to the $4.20 level, which is the most recent high. That is essentially the top of the overall consolidation, and therefore I think it will be rather resistive. If we break above there, then we go looking towards the $4.40 level, which is the measured move from a couple of bullish flags underneath and the consolidation area that we had broken out of several months back. On the other hand, if we turn around a break down from here, a move below the 50 day EMA could send this market towards the $3.60 level, possibly even as low as $3.50.

Natural gas will continue to move upon the idea of heat driving up demand, and at this point I can tell you that temperatures in the United States are very strong, and therefore demand should be just as much. I have no interest in shorting this market, and it certainly looks as if there will be buyers on dips. We are getting close to the end of the run though, at least from a historical standpoint.

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