Natural Gas Price Forecast – Natural Gas Continues Shot Higher

Natural gas markets have shown themselves to be strong yet again during the trading session on Wednesday, as we go racing towards the $3.00 level. As you can see on the chart, there is an area of resistance just above and quite frankly we are getting a bit overextended. Most of the run lately has been due to cooler than usual temperatures in the United States, but perhaps more importantly, the fact that commodities in general are getting bid higher.

NATGAS Video 29.04.21

Because of this, the first cracks in the commodity run will show up here. Even if you are not a trader of natural gas, you should probably keep an eye on it, as it could give you an idea as to what could happen in other commodity markets. Nonetheless, we are getting far too overbought, and we still have a huge gap underneath that has yet to be filled. Gaps do get filled in the futures market eventually, so I am looking for a selling opportunity. Yes, the market has been rallying quite significantly, but this is not a trade that I am willing to take.

I am looking for signs of exhaustion that I can take advantage of as we have been in a downtrend for multiple years, and every time that we have seen this market try to break out to the upside, sellers always return as there is far too much natural gas out there for demand to ever overwhelm. With this being the case, some people are banking on the “zero emissions” trade, but quite frankly that is a longer-term issue that goes decades, not something that can be traded in the short term.

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