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Natural Gas Price Forecast – Natural Gas Reaches Towards Major Resistance

By:
Christopher Lewis
Published: Jun 24, 2021, 16:04 UTC

The natural gas markets have rallied again during the trading session on Thursday as we are reaching the crucial $3.40 level.

Natural Gas Price Forecast – Natural Gas Reaches Towards Major Resistance

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Natural gas markets have rallied quite significantly during the course of the trading session on Thursday to reach towards the $3.40 level. If the market can stay above there, it is very likely that the market would go looking towards the $4.40 level. I will however be waiting for some type of daily close above there in order to get involved. This is because the area has been so important as far as resistance is concerned multiple times, so the last thing I want to do is trying to “anticipate the move”, because quite frankly if we are going to see sellers jumping back into the market, it is going to be in this area.

NATGAS Video 25.06.21

All that being said, if we do break down from here, I anticipate that there should be a significant amount of support near the $3.20 level. Underneath there, then the market goes looking for the 50 day EMA which is currently sitting at the $3.05 level. After that, then the psychologically three dollars level comes into the picture, which losing that would be a sign that we are more than likely going to go looking towards the 200 day EMA and maybe even the gap in that same vicinity.

Typically, this time a year is rather negative for natural gas as heating demand drops to the floor. However, the market looks very likely to continue to get a bit of a “knock on effect” from the rest of the commodity boom, so that being said I think we could very well break out to the upside. Again though, I need to see this market close above there on a daily close to get involved in that move.

For a look at all of today’s economic events, check out our economic calendar.

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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