Natural Gas Price Forecast – Natural Gas Markets Tread Water

Natural gas markets have gone back and forth during the course of the trading session on Friday as we continue to kill time just above the $3.00 level. At this point, it does seem to be offering support but quite frankly I think the real support is probably closer to the 50 day EMA. The 50 day EMA is sitting near the $2.90 level, an area that has shown quite a bit of support previously anyway. That being said, the market is likely to find buyers in that area, but if we can break down below it, then it is likely that we will see an acceleration to the downside, perhaps reaching towards the gap underneath. Further adding credence to that gap is the fact that the 200 day EMA is sitting at the bottom of it as well.

NATGAS Video 07.06.21

As far as the upside is concerned, the $3.20 level will continue to be resistance, as it recently had seen a lot of selling pressure. That being the case, the market is likely to continue to see a lot of back and forth as long as we are up in this area, so all things being equal I think that this is a market that probably has more downward pressure than up from a longer-term standpoint, and therefore I like the idea of shorting on signs of exhaustion in of course downward accelerator pressure. Yes, there will be a little bit more demand for natural gas due to cooling needs in the northern hemisphere, but at the end of the day we still have more than enough natural gas to satiate that appetite going forward.

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