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Natural Gas Price Forecast – Natural Gas Trying to Break Through Support

By:
Christopher Lewis
Published: May 11, 2021, 15:56 UTC

Natural gas markets have dipped a bit during the trading session on Tuesday as the $3.00 level continues to cause a bit of noise.

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Natural gas markets have fallen a bit during the session on Tuesday to break below the $2.90 level rather early. That being said, market participants are more than likely going to continue to be looking at the overall cooler temperatures in the United States as a potential catalyst to drive prices higher, and of course the whole “reopening trade.” That being said this is a situation where we are heading towards the warmer temperatures and therefore it is likely that we will continue to see bearish pressure eventually.

NATGAS Video 12.05.21

If we can break down below the bottom of the candlestick for the trading session on Tuesday, then I do believe that we go looking to fill that gap underneath. That is my longer-term plan, and quite frankly have no interest in buying natural gas this time year. Yes, I have had to watch this rally because I knew it would be short-lived, and now that we are running out of momentum at the top of the consolidation area, I begin to look at the possibility of shorting.

All things being equal, I believe that we get to the bottom of the consolidation area which means we could make a run towards the $2.40 level. The market is more than likely going to be negative given enough time and with warmer temperatures coming in the next few weeks I think we should start seeing downward pressure. On the other hand, if we were to break above the $3.20 level, then we could see an explosive move to the upside, but I doubt that is going to be the case anytime soon.

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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