Natural Gas Price Forecast – Natural Gas Pressuring Top of Range

The natural gas markets have gone back and forth during the course of the session on Wednesday as we continue to struggle between the $3.00 level and the $3.20 level. This is the top of a larger consolidation area, and it is worth noting that there has been a significant “commodity boom” that has a bit of a “knock on effect” over here. The 50 day EMA is reaching towards the $2.90 level, an area that has been massive support recently. If we were to break down below there, then it is likely that we could break down to go looking towards the gap underneath, which is also supported by the 200 day EMA right now.

NATGAS Video 03.06.21

To the upside, the $3.20 level offers significant resistance, as we have seen multiple times. The candlestick for the trading session on Wednesday looks like it is showing signs of exhaustion as well, so I would anticipate that we are probably going to drop towards the $3.00 level. Keep in mind that the market also has to keep in mind that the demand for natural gas is probably going to drop in the short term, as temperatures start to rise during the course of the next several months, as we are more than likely going to see the supply/demand equation play out. All things been equal though, there is a certain amount of foreign demand for LNG coming into the picture. Because of this, I expect choppy behavior, but I also recognize that sooner or later we will more than likely roll over.

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