Natural Gas Price Forecast – Natural Gas Continues to Go Straight Up in the Air

Natural gas markets have gapped higher to kick off the trading session on Tuesday and send the market back above the $6.00 level. That being said, the market looks as if it is going to threaten the highs that were made just a couple of weeks ago, and rip to the upside. After all, the European Union simply cannot get enough natural gas to power itself right now. If that is going to be the case, the market is likely to see more upward pressure in the short term than anything else, so pullbacks certainly would be a buying opportunity.

NATGAS Video 06.10.21

All things been equal, I believe that there is a huge “floor the market” at the $5.00 level, as the 50 day EMA is reaching towards that level. That does not necessarily mean that we are going to get there anytime soon, but I have that in the back of my mind. The $5.50 level also comes into the picture, as we have recently seen a lot of buying pressure in that area. Quite frankly, with the colder temperatures coming in the next month or two, that will also pressed the futures market to the upside, and if we do see some type of truly cold winter, that could have ramifications in this market as we are already stretched when it comes to supply.

You should also keep in mind that North America is not having anywhere near the issues that the European Union or China are having with natural gas, so at this point in time I think you need to pick your spots, but it still looks as if it is a “buy on the dips” type of situation.

For a look at all of today’s economic events, check out our economic calendar.