Natural Gas Weekly Price Forecast – Natural Gas Continues to Test Resistance

Natural gas markets have been a bit interesting over the last couple of sessions, as we are focusing on a tropical storm forming in the Gulf of Mexico that could come into play. Slowing down short-term delivery is of course going to be an issue, due to the fact that natural gas markets are already exceedingly expensive for this time year. With the overall commodity boom, natural gas has seen a bit of a “knock on effect” with money flooding into the market. All things been equal, I think that this is very likely going to continue to be a choppy market, but if we can clear the $3.40 level, it is very likely that this market really takes off to the upside.

NATGAS Video 21.06.21

All that being said, it is very likely that we will continue to see a lot of back and forth at this point in time, but if we were to break down below the $3.15 level, then we probably go looking towards the $3.00 level, and then maybe even down to the $2.90 level. After that, then we could go looking to fill the gap which is all the way down to the $2.65 level. Ultimately though, this is a market that I think is trying to determine whether can break out, or if it will simply go back and forth in the overall consolidation region.

There is a tropical storm forming in the Gulf of Mexico, so that might be the reason to kick this thing higher, at least in the short term and we could see some type of significant move rather quickly. Whether or not it holds might be a different question altogether.

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