Natural Gas Price Forecast – Natural Gas Testing Major Resistance BarrierNatural gas markets have rallied again during the course of the trading session here on Wednesday, testing the $3.40 level which is a major area to pay attention to.
Natural gas is one of the most heavily shorted positions on Wall Street right now, which makes the $3.40 level very important as it could kick off a “short squeeze.” At this point in time, it appears that a lot of natural gas momentum is simply a bit of a “knock on effect” from the commodity boom in general, but the most important thing to remember here is that “price is truth.” Never mind the fact that the United States has enough natural gas in the ground to power the rest of the world for 300 years, and the Canada has more, the reality is price is going higher, so the move does not necessarily need to make sense at this point.
NATGAS Video 24.06.21
The question now remains whether or not we can get a daily close above the $3.40 level? Right now, it certainly looks as if we are going to try to do so. If we do, that could kick off a bit of a short squeeze play, much like we have seen by the gang at Wall Street Bets, and some of their favorite meme stocks. That being said, there actually is some demand for natural gas, so it makes a little bit more sense than that move but at the end of the day price is going higher. As far as shorting is concerned, I need to see that hammer taken out from the Monday session to the downside in order to do so, which typically would be the play this time a year as demand typically falls off a cliff.
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