Natural Gas Price Forecast – Natural Gas Markets Break Higher

Natural gas markets have gotten a bit of a boost recently, as it looks like traders are banking on the Biden administration pushing through more demand for natural gas, but at the end of the day we have seen this multiple decades in the past, and typically it goes nowhere. While the crude oil markets are pricing in the idea of the Biden administration doing everything it can bring down the use of fossil fuels, the reality is natural gas is seen as a cleaner alternative.

NATGAS Video 26.04.21

However, this is a short-lived phenomenon, because it does not take into account the massive amount of effort, infrastructure, and perhaps even more importantly time that it takes to make this type of switch. With that being the case, I am looking for a selling opportunity as per usual, but it is a situation where I am simply going to have to be patient in order to take advantage of it. There is a reason that natural gas continues to fall over the longer term, and that is because there is so much of it in the United States that on a lot of rigs, they simply burn it off as a byproduct of crude oil.

Somewhere between here and the shooting star from a couple of months ago I will be looking for another shooting star to sell, or perhaps a significant engulfing candlestick to the downside. Nonetheless, I have noticed in buying this market because even after this massive move it would still be countertrend. As temperatures rise next week in America, that will probably cause a bit of trouble for buyers as well.

For a look at all of today’s economic events, check out our economic calendar.