Natural Gas Price Forecast – Continues Explosive Move HigherNatural gas markets have completely broken the short sellers out there, as we have sliced through the $3.00 level.
Natural gas markets have initially pulled back a bit during the trading session on Friday, but then shot straight up in the air as we have left the $3.00 level in the rearview mirror. Now that we have broken the psychologically significant figure, it is a sign that we are kicking off the next leg higher. Ultimately, I like the idea of buying short-term pullbacks that give us an opportunity to pick up value. The $3.00 level should continue to be an area where a lot of people will focus on, as it is so important. However, now that we have broken through there one would have to think that a lot of short positions have been completely blown down.
NATGAS Video 26.10.20
At this point in time, I think that we are more than likely going to continue to go towards the $3.50 level, but we most certainly have gotten way ahead of ourselves during the trading session. Because of this, there are a lot of people out there that will be looking for an opportunity to pick up the contract as it is cheap on the pullbacks and obviously, we have cold temperatures coming to the United States and Europe. As demand picks up, it will drive price higher, at least from a cyclical standpoint. Once we get to the spring contracts, it is then time to start shorting yet again. Ultimately, this is a market that I think will continue to cause quite a bit of volatility, but it is clear that we only have one direction we should be trading and that is to the upside. Natural gas continues to be one of the bigger performers I follow.
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