Natural Gas Price Forecast – Natural Gas Markets Testing Trendline

Natural gas markets have had a tough trading session on Monday, slicing through the $2.55 level and by extension the uptrend line. That being said, if we continue to see more bearish pressure it is likely that the natural gas markets will suffer due to the lack of demand as we go into warmer temperatures. With this, I do believe that it is only a matter of time before we break down towards the $2.25 level, and then eventually the $2.00 level.

NATGAS Video 06.04.21

To the upside, the 50 day EMA should offer resistance, eventually bringing in some selling pressure. Because of this, I believe that it is only a matter of time before any rally at this point should be sold, because quite frankly this is a market that has no business rallying for any significant amount of time. The oversupply and lack of demand makes for a perfect selling opportunity every time it rallies. The market breaking above the $2.80 level would be a bullish sign and could perhaps in the natural gas markets looking towards the $3.00 level, but I do not think that is likely to happen anytime soon.

Because of this, I am looking for opportunities to short this market every time I can and have no interest in trying to buy it until sometime near October or so, when demand starts to pick up again. With the northern hemisphere warming up, it is difficult to imagine a scenario where there is a lot of demand and therefore price appreciation in this market anytime soon. With that being the case, signs of exhaustion will be what drives me forward.

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