Natural Gas Price Forecast – Natural Gas Shoot Straight Up in the Air

Natural gas markets have rallied significantly during the trading session on Monday to continue the overall uptrend that we have been in for some time. The $3.80 level continues to see a lot of support, so therefore we need to pay close attention to the level as a potential buying opportunity. It should also be noted that we reached towards the $4.00 level immediately, the large, round, psychologically significant figure that the market has been paying close attention to. Obviously, there is a certain amount of headline attention paid to this figure, but it has been sliced through multiple times, so breaking through the top of this candlestick should not be that difficult.

NATGAS Video 17.08.21

If we do break above the $4.00 level, then I think we go looking towards the $4.20 level above, which is a major resistance level that we have been paying close attention to over the last several weeks. If we can break above the $4.20 level, then it is likely that the market could go towards the $4.40 area that has been targeted by multiple bullish flags and of course the consolidation area between $3.40 and $2.40 that we broke out of previously.

The 50 day EMA is sitting at the $3.70 level, an indicator that continues to slope higher, so I think it is only a matter of time before we see the buyers jump back into this market regardless. All things being equal, I do not know if we can break above the $4.40 level, but it certainly looks as if we are trying to get to that area. Furthermore, that heat wave in America continue to be a major driver.

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