Natural Gas Price Forecast – Natural Gas Testing Major SupportNatural gas markets have broken down during the course of the trading session on Friday to reach down towards the $2.70 level.
Natural gas markets have broken down a bit during the course of the trading session on Friday to reach towards the bottom of a hammer that had formed on top of a gap. At this point in time, we can break down below the Thursday candlestick, we could go down to the $2.60 level, maybe even the 200 day EMA which is at the $2.57 level. After that, then we would go looking towards the $2.40 level. At this point in time, this is a market that certainly looks negative and quite frankly it should be. After all, the market is going to continue to be very noisy and focus on the fact that the temperatures are going to start rising again shortly.
NATGAS Video 08.03.21
At this point in time, if the market rallies, it is likely that we could see a bit of exhaustion come into play that we would start selling. The $3.00 level above should be significant resistance based upon not only structural history, but also is a large, round, psychologically significant figure. At this point, I am simply fading rallies because as temperatures rise in the United States in the European Union, natural gas will see less demand. Furthermore, the freezing temperatures in the central part of the United States are now a thing of the past, so we should see more supply come onto the market and continue to push prices lower. After all, we are already trading the April contract, when you see demand drop off quite drastically all things being normal.
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