Natural Gas Markets Pull Back From Bottom of Triangle

Natural gas markets have pulled back rather significantly during the trading session on Thursday to show signs of weakness yet again. As we reach the bottom of the previous triangle, sellers came back in to push the market around, showing signs of exhaustion and of course massive resistance which is not a huge surprise considering I was massive support previously. That being said, it is worth noting that the market will continue to see a lot of noisy behavior, but the overall attitude and natural gas should remain the same the longer term.

NATGAS Video 14.01.22

Natural gas is going to get hit due to the fact that although we have colder temperatures than expected in the United States, it is a temporary phenomenon, and it is only a matter of time before we start falling again as far as pricing is concerned as natural gas is a great way to lose money if you are betting on higher prices for any significant amount of time.

All things been equal, as we head towards spring, demand will fall through the floor and of course price will follow right along with it. With that being the case, the market is one that I continue to look at with great suspicion, but I do recognize that there is an impulsive move probably makes falling from here a little bit more difficult than usual, just simply because there will be so many people trying to defend it. Longer-term though, this is a market that will fall given enough time, so therefore I like the idea of shorting here and reaching towards the 200 day EMA at the very least.

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