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Natural Gas Price Forecast – Natural Gas Markets Continue to Press Resistance

By:
Christopher Lewis
Published: Jun 22, 2021, 16:09 UTC

Natural gas markets have rallied again during the trading session on Tuesday, as we continue to pressure the overall upside.

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Natural gas markets have rallied a bit during the course of the trading session on Tuesday, as we continue to see upward pressure in general. The market has shown itself to be rather resilient and as a result I believe that we are going to continue to see a lot of noise in this general vicinity. If we can break above the $3.40 level, then it is possible we may have something bigger in store. Until then, I suspect that what we will see is a lot of noisy and volatile behavior.

NATGAS Video 23.06.21

Keep in mind that the markets have been positive overall, but they also have had a little bit of a “knock on effect” coming from the commodity boom in general. With that being said, we could see a complete turnaround rather quickly if the right conditions appear. A breakdown below the $3.15 level could be the beginning of a fairly significant selloff, but at the same time I can make an argument for this market going as high as $4.40. That is based upon the “measured move” of the consolidation area that we are attempting to break out of.

All things been equal, I would keep my position size somewhat small but keep in mind that this is a time of year that typically natural gas struggles a bit. Having said that, we do have some problems with tropical storms in the Gulf of Mexico, so that could provide a little bit of a short-term boost regardless. As I see it right now, the market is essentially trading between the $3.40 level above, and the $3.15 level underneath.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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