Natural Gas Price Forecast – Natural Gas Testing Top of Resistance Barrier

Natural gas markets have rallied significantly to reach towards the $3.18 level, which of course is close to the $3.20 level which I think is a major barrier. That being said, the market is likely to see a bit of resistance just above, but it is obvious that the commodity boom is starting to bleed over into this market even further, which is a bit interesting considering that supply and demand dynamics do not necessarily suggest that we are going to go higher.

NATGAS Video 09.06.21

That being said, I would look at signs of exhaustion too short for a very small again, because quite frankly we just cannot seem to pick up any momentum to the downside. That being said, we have not been able to break out either. With this being the case, it is very likely that this choppy behavior continues, and as a result I think what we are looking at is a scenario that will continue to be very volatile to say the least, and it is the purview of the day traders to be involved in this market. With that being the case, I do expect a move lower, but if we were to break above the high as $3.30, that could spell trouble for the sellers.

All things been equal, the first commodity to fall in what would be a counter move to the commodity boom would almost certainly be natural gas due to the fact that there is so much of it. However, it is obvious that shorting this market right now is relatively dangerous, so I would not do so with a large amount of money.

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