Natural Gas Price Forecast – Natural Gas Continues Consolidation

Natural gas markets have rallied a bit during the trading session on Wednesday to reach towards the $2.60 level. This is an area that is the top of the gap from a couple of weeks ago, and it has now been filled. Nonetheless, I think we could continue to go a little bit higher in order to find resistance near the 50 day EMA. At this point in time, I think that any opportunity you get to short this market based upon exhaustion, you should take it.

NATGAS Video 25.03.21

As we head into the spring, demand for natural gas will start to plummet, mainly due to the warmer temperatures in the northern hemisphere driving down need. After all, this is a market that is oversupplied, and we are simply bouncing from an area that is relatively significant support. With that being the case, I think this is simply an opportunity to sit back and get short of this market yet again. I believe that the natural gas markets will continue to offer plenty of opportunities to sell, but it is more than likely going to be something that you have to wait for to get involved in.

Longer-term, I believe that the market goes looking towards the $2.00 level, perhaps even the $1.80 level after that. Nonetheless, I do know that I have no interest in trying to buy this market as the fundamentals are working against it for the longer term. Ultimately, we will continue to see a lot of volatility, but I still believe that this is essentially a “one-way trade.”

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