Natural Gas Price Forecast – Natural Gas Markets Drift Lower Into the

Natural gas markets have gapped lower to kick off the trading session on Friday, and then fell towards the $5.50 level as we continue to see plenty of consolidation. When you look at the longer-term chart, you can see that there is a massive triangle going on, meaning that we are getting a bit of consolidation. This makes sense, because the market shot straight up in the air initially, and now we have to digest whether or not we are going to continue going higher. If we can clear the $6.00 level, is very likely that we will continue the upward momentum, which would not be surprising due to the fact that this time of year typically cause quite a bit of demand for natural gas as temperatures drop.

NATGAS Video 08.11.21

That being said, keep in mind that this is a US-based contract, so this is more about the weather in the United States than some of the demand that you may see in the European Union. If we break down below the $5.00 level, that could send this market crashing. Quite frankly, we are at strong levels, and it should not be a huge surprise to see a break down, but I think it is a bit early to be calling for that. If we do break to the upside, then it is very likely that after that $6.00 level, you would probably have a move to the $6.50 level, followed by the $7.00 level. As the economy reopens, that has put a bit of a strain on natural gas supplies as well.