Natural Gas Markets Testing Recent High

Natural Gas Technical Analysis

The natural gas markets have been shooting straight up in the air for a while, mainly based upon the idea that the Europeans may start to import LNG from the United States in a much larger quantity, but the biggest problem with that theory is that the Europeans do not have the capacity to “re-gasify” much more than they are already. That being said, Germany is starting to talk about coal, which will work against natural gas eventually. However, we are now looking at the weather in the northeastern part of the United States is going to be extraordinarily cold over the weekend.

This is the catch with natural gas, it does tend to trade on the latest weather reports coming out of places like Boston, New York, and Washington DC. That being said, it is likely that we will make an attempt to make a fresh, new high, but if we cannot this might end up being the ultimate shorting opportunity. Demand for natural gas is going to start to decline quite rapidly, so it is only a matter of time before that comes back into the market.

That being said, you simply cannot short the market based upon the candlesticks, as there has not been a setup quite yet. However, it has been almost impossible to chase this trade, so this is a market that I am waiting for a much more reliable signal than I have right now, and then I will place the swing trade. Short-term trading is very difficult in this market, as it tends to be so volatile.

Natural Gas Price Forecast Video 07.04.22

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