Natural Gas Markets Continue to Pressure the Upside

Natural Gas Technical Analysis

Natural gas markets have rallied again during the session on Wednesday to test the top of the shooting star from Tuesday. If we can break above that shooting star, it would suggest that even more parabolic behavior is going to happen. Quite frankly, natural gas markets are overbought by just about any metric you measure them, but as we have seen in the Japanese yen, markets are broken in the sense that they are one-sided in a lot of positions.

All of that being said, foreign demand for LNG is starting to pick up and increased electricity demand should help natural gas, but the seasonality is still something that I am very cautious with. Demand for natural gas will drop when warmer temperatures get here, and they are most certainly on the way. That being said, the problems in Europe and dealing with Russia may continue to put a little bit of a floor in this market, but quite frankly I cannot justify buying a market that is behaving like this.

At this point, I am waiting for a signal to swing in the other direction, but I have not had it. There does come a point where the markets have gotten so far ahead of themselves that it is best to ignore them until they tell you that exhaustion is taking hold. We may be seeing that over the last couple of days, but until we get confirmation I will trade crude oil, or for that matter currencies, as they are not so parabolic.

Natural Gas Price Forecast Video 14.04.22

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