Natural Gas Weekly Price Forecast – Natural Gas Continues to Flirt With Three Dollars

Natural gas markets have gapped lower to kick off the week but then shot straight up in the air to show signs of resiliency. That being said, there is a significant amount of resistance in the $3.00 level. At this point time, the market is likely to see that area as difficult to overcome, so I think that we continue to see plenty of sellers sooner or later, as we are at the top of a larger consolidation area. At this point, the market is likely to see a lot of choppy behavior more than anything else, as we go looking towards the bottom of the range. The $2.45 level is an area that will attract a lot of attention, so I think that makes quite a bit of sense that there would be a target there.

NATGAS Video 31.05.21

All things been equal, the market should continue to chop back and forth and cause quite a bit of noise. Ultimately, the market is likely to see the cyclical trade come back into the picture, as temperatures are warming up in the United States and it should drive down a bit of the demand. The market is simply treading water going back and forth over the last several months, and I think now that we are at the top of the range it is likely that we see negativity.

It is also worth noting that the 50 week EMA is trying to cross above the 200 week EMA, so that offers a little bit of dynamic support as well. That being said, the market is likely to see more of the same action that we have seen for quite some time.

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