Natural Gas Price Forecast – Natural Gas Continues to Try BouncingNatural gas rallied a bit on Wednesday to continue the overall recovery that we have seen after the plunge. However, there are still plenty of sellers above.
Natural gas markets have rallied again during the trading session on Wednesday as we are seen a bit of a bounce after the massive selloff from the highs at $3.30. That being said, I am looking to sell this market at the first signs of exhaustion, which we do not quite have yet. The $3.00 level would be a nice opportunity to start shorting on some type of long wick on the daily chart, because it will show that we are running out of momentum yet again. That being said, the market is likely to selloff given enough time, due to the fact that there is a significant amount of supply out there and of course the fact that the freezing of the central United States is over and allows for more supply to come online.
NATGAS Video 04.03.21
Beyond that, temperatures are going to start warming in the northern hemisphere which will drive down demand drastically when it comes to the natural gas markets. There is the reopening trade, but quite frankly there is enough natural gas out there to make it underperform other commodities and even other energy market such as the crude oil markets. I am looking for opportunities to get short again, and I do think that we will eventually go looking towards the $2.40 level although it may be a bit choppy between now and then. I have no scenario in which I would be a buyer of the natural gas markets, so therefore I am simply sitting on my hands and waiting for an opportunity to start shorting yet again.
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