Natural Gas Weekly Price Forecast – Natural Gas Markets Jump Higher Again for the Week
Natural gas markets have gapped higher to kick off the trading week, and then fell immediately. That being said, the market looks very likely to continue going higher over the intermediate term, because quite frankly this is a market that is essentially on fire. Keep in mind that the heat wave in the United States continued to push demand higher, and as soon as that was starting to subside, hurricanes started showing up. In other words, this has been a bit of a “perfect storm” for natural gas pricing to go higher.
NATGAS Video 06.09.21
That being said, I do recognize that the area just below the $5.00 level offers a significant amount of resistance, so I do think that it would be a bit of a challenge to get above there. Regardless, this is a market that I think has a lot of noise attached to it, so even though I would anticipate a little bit of a pullback in the short term, I think that you are going to need to be very hesitant to short this market. In fact, I would have to see a new “swing low” to get short. At that point, we would be talking about somewhere near the $3.74 level.
No matter how you look at this chart, it is easy to see that it is a bit parabolic, and when things change fundamentally, we could see a massive crash. After all, natural gas is not exactly rare, so one would think that with these higher prices that shale producers would be on full tilt. Right now, it is probably more about the refinery part of the process that is helping the market elevated itself a bit.
For a look at all of today’s economic events, check out our economic calendar.