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Natural Gas Weekly Price Forecast – Natural Gas Markets Continue to Struggle With Big Handle

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·2 min read
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Natural gas markets have gone back and forth during the course of the week, showing signs of choppiness. All things being equal, the market is going to continue to show resistance at the $3.00 level, which of course is a large, round, psychologically significant figure, and therefore it does make a certain amount of sense that we would stall here. At this point in time, I think that if we break down will more than likely will go looking to fill the gap underneath which is something that futures markets do quite often. Furthermore, we also have to take a look at the demand equation which of course will start to drop as temperatures rallied.

NATGAS Video 10.05.21

The market continues to be very sideways, which I think more than anything else is related to the idea of commodities being in a bit of a super cycle, because quite frankly natural gas has no business being this high as we head into warmer temperatures. All things being equal, it is likely that we could go down towards the $2.50 level underneath, which shows a significant amount of support. All things being equal, this is a market that is showing signs of exhaustion, and it does make a certain amount of sense that we would see a continuation of the overall consolidation for the last several months. All things been equal, I am a seller as this market is one that is far too oversupplied in general and is simply seeing some residual effects from other markets. It has been a cooler than usual spring, but at this point it looks like temperatures are going to start picking up.

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

This article was originally posted on FX Empire

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