Natural Gas Price Forecast – Natgas Has Strong Showing on Cold Weather

Natural gas markets have pulled back a bit during the trading session on Wednesday but then turned around to rip to the upside. By doing so, the market looks likely to continue to go back and forth in this general vicinity as we try to weigh whether or not the demand is going to come into play and push the market higher, or are we going to fall from here? The obvious answer is that we will eventually fall due to the fact that the temperatures are going to get warmer from here on out for the rest of the year. In fact, we are already trading the March contract, so I suspect that any rally is going to be short-lived.

NATGAS Video 11.02.21

Furthermore, the $3.00 level above features a gap that was just filled, and it should continue to offer selling pressure. The market has been noisy in general, but that is typical when you are looking at this time year, due to the fact that you may get sudden shifts in temperature, but we are currently trading during the last few weeks of winter, which could offer even better areas the start shorting from. I have absolutely no interest in buying natural gas, and quite frankly the oversupply of natural gas is something that is not going to go away anytime soon, and therefore I think that at this point in time looking for short-term rallies that show signs of exhaustion will be the set up that you are looking for. Longer-term, I believe that this market revisits the 200 day EMA.

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