Natural Gas Markets Continue Parabolic Run Higher

Natural Gas Technical Analysis

Natural gas markets have continued the parabolic run to the upside yet again on Thursday. At this point, a pullback does make a certain amount of sense, but whether or not it can stick is a completely different question. Quite frankly, the surge in natural gas is something that has gotten out of hand, and what concerns me is that all it would take is for Europe to finally admit that it is going to continue buying Russian gas to make this thing falls apart. If and when that day comes, you would probably see it $2.00 drop rather quickly.

We are essentially playing a game of chicken here, but all one can do is look at the technical analysis. While it is true that the market has been very strong, the problem is that it runs on the premise that Europe can hold its own. The problem is that if they do choose to use US gas, they do not have the ability to “re-gasify” enough to make much of a difference.

Looking at the technical analysis, it does suggest that perhaps we are breaking out of a huge consolidation area, and in theory, it suggests that a $3.00 move could be coming. That suggests a reading of $9.50, but there is also the very stark reality that the further this goes, the more precarious the situation is. After all, demand destruction comes into play, not only due to the expense but quite frankly the fact that people will start to look towards crude oil instead of natural gas for power. Also, temperatures dropping in the short term have had an outsized effect on natural gas in America, but at this juncture that will be short-term.

Natural Gas Price Forecast Video 15.04.22

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