Natural Gas Weekly Price Forecast – Natural Gas Markets Have Continued Consolidation

Natural gas markets have initially tried to rally during the course of the week but pulled back from the $6.25 level. By doing so, the market is very likely to continue to see a lot of noisy behavior between that level in the $5.00 level. At this point in time, the market is likely to continue seeing choppy behavior due to the fact that there is a lot of digesting to do after this massive move to the upside. Because of this, I think that natural gas is probably a market that longer-term traders are going to be looking to buy the dips on, as we head into the coldest part of the year. Demand should pick up, and quite frankly the infrastructure situation is not looking good either.

NATGAS Video 01.11.21

As long as we have the global reopening trade out there, it does make a certain amount of sense that we would see natural gas continue to attract a certain amount of attention. All things been equal though, we need to digest these gains in order to go higher. A short-term pullback at this point in time it is likely to happen, but I would be very interested in natural gas closer to the $5.00 level. The market has been a bit parabolic, so do not be surprised at all if we spin the next several weeks in the same range that we have been in. Nonetheless, it is just about impossible to short this market anytime soon.

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