Natural Gas Price Forecast – Natural Gas Markets Testing $4.20

Natural gas markets have fallen a bit during the course of the trading session on Tuesday to reach down towards the $4.20 level, an area that previously had been resistance. The market is still trying to come to grips with what happened with hurricane Ida, and whether or not there was any serious damage to production. Beyond that, we also have the heat wave in the United States it continues to cause major issues, but temperatures are starting to drop a bit, and therefore we could see a little bit of relief. At this point, I have to turn towards the technical analysis to determine what I would do.

NATGAS Video 01.09.21

On a move below the $4.20 level, then I suspect that we are going to see $4.00 offer support next. The 50 day EMA is reaching towards the $4.00 level as well, as the market has seen that figure has been important. Ultimately, the market is likely to see a certain amount of headline noise around that level as well. This is a market that is going to start focusing on fall, and demand coming out of the northeastern part of the United States. It comes down to weather, so if we break down below the 50 day EMA, then I think at that point in time we will probably see some type of bigger breakdown. That being said, we are nowhere near that and of course the commodity markets booming in general will continue to push to the upside. Ultimately, I think that a lot of traders are going to be looking at this as a “buy on the dips” type of scenario.

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