Natural Gas Price Forecast – Natural Gas Nearing BreakoutThe $3.40 level is crucial as far as I can see from a longer-term standpoint, and as I look at the charts on Tuesday, it is clear we are pressuring that area.
Natural gas markets have gone back and forth during the course of the trading session on Tuesday as we are getting precariously close to the $3.40 level. The $3.40 level is a major area of resistance, and if we can break above here it is very likely that we could climb another $1.00 to the upside based upon the longer-term technical analysis. However, if we fail at this area, it could be the beginning of the fall of price into the summertime. Because of this, I think that the next couple of days could be crucial, but one thing is for certain here, the buyers have been very loud on the way up.
NATGAS Video 16.06.21
Underneath, the $3.00 level could be a very significant target as the 50 day EMA is starting to come into the picture. That being said, if we can break down below the 50 day EMA, that could change the overall outlook of this market. That being said though, I think that as far as shorting is concerned, we need to see the market take out the $3.20 level to the downside before doing so.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
If we do break out to the upside, the $4.40 level is a target from what I can see, based upon not only that measured move but also the technical analysis from the longer-term standpoint. The $4.40 level has been very crucial in the past, so it will be very interesting to see how that plays out. Over the next couple of days, we are going to have serious discussions about inflation, and that right now is probably the biggest driver of this market. Above four dollars $3.40, I think that is an extraordinarily bullish sign.
For a look at all of today’s economic events, check out our economic calendar.