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Natural Gas Price Forecast – Natural Gas Pulls Back From Same Resistance

By:
Christopher Lewis
Published: Jun 7, 2021, 16:08 UTC

Natural gas markets have pulled back a bit from the top of the range that we have been in, showing a continuation of the overall sideways action.

Natural Gas

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Natural gas markets have pulled back a bit during the trading session on Monday, as we continue to see the same resistance barrier come into the picture. That being said, it looks like we are not ready to change the attitude of the market in general. The $3.10 level seems to be seen a lot of selling as of late, and therefore I think we continue to see a lot of back and forth action between that level and the $3.00 level.

NATGAS Video 08.06.21

In general, I believe that the market will probably continue to see a lot of noisy and choppy behavior due to the fact that although natural gas markets are extraordinarily oversupplied from a longer-term perspective, the reality is that opening economies around the world will continue to push this market to the upside simultaneously. In other words, I think we continue to chop until we finally take off. If we break down below the 50 day EMA underneath, then the market could go looking towards the gap underneath. The gap could be seen as a target or short-sellers, which sits at the $2.70 level. After that, then we could be looking at the $2.40 level which is the bottom of the overall larger trading range.

If we do break out to the upside, we need to get past the $3.20 level, which could open up a move towards the $3.40 level. That being said, the market is likely to continue to see a lot of back and forth behavior in general, so I think you have to look at it through the prism of short-term range bound trading with an eye on a move to the downside.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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