Natural Gas Price Forecast – Natural Gas Exploded to the Upside

Natural gas markets have gapped higher to kick off the trading session on Wednesday, and then shot straight up in the air. By doing so, we have cleared the most recent highs and now look likely to go towards the $4.40 level, an area that I had been talking about previously. When you look at the chart you can make an argument for a bullish flag, not only here but below on the way up to this level. Beyond that, we also have the previous consolidation area that measured for a move to the $4.40 level, and therefore I think it all kind of lines up quite nicely.

NATGAS Video 05.08.21

On the occasional pullback, there will more than likely continue to be plenty of buyers, as the heat wave in the western part of the United States continues to drive up pricing, and of course we have the overall commodity boom that helps the situation as well. To the downside, the area around the $4.00 level should be thought of as a bit of a “floor the market” right now, so pay close attention to any reaction and that vicinity if we do pull back. On the other hand, if we break above the top of the candlestick for the day, then it just simply is going to allow the market to go much higher. All things been equal, I have noticed in shorting this market anytime soon, unless of course there is some type of drastic change in the weather, something that I see that happening right away. Eventually, we may get a massive selloff but right now we are nowhere near it.

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