Natural Gas Markets Give Up Early Gains

Natural gas markets have initially rallied during the trading session on Wednesday to reach the beginning of a major supply area. The candlestick does show that there is a little bit of a pushback, but at this point in time, we probably have a little bit of work to do to find clarity. If we can break above the $5.50 level, that does give the possibility of a bigger move, but the demand for natural gas will be dropping over the next several weeks.

NATGAS Video 24.03.22

A breakdown below the $5.00 level more than likely continues to open up the possibility of a move much lower. At that point, the market more than likely goes looking towards the 50 Day EMA. Overall, this is a market that I think continues to see a lot of noisy behavior, but that is nothing new with natural gas as it is driven more likely than not based upon the weather reports in the northeastern part of the United States over the next 10 days. Weather is fickle, and that of course makes this market fickle.

I still think that there is a lot of noise just above, but anything is possible at this point in time. It is not necessarily that there is demand for natural gas, just that there has been a bit of a melt-up in most commodities. Eventually, people start to focus on fundamentals again, as this is not a European contract. The market continues to be very noisy, but if we open up small positions and only add as things go in our favor, a swing trade is setting up.

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