Natural Gas Markets Continue to Look Elevated
By: Christopher Lewis | July 22, 2021
• Natural gas markets have gone back and forth during the course of the trading session on Thursday, as we continue to see a lot of demand due to the heatwave out West.
Natural gas markets have gone back and forth during the course of the trading session on Thursday as we have continued to struggle with the $4.00 level above. That of course is a large, round, psychologically significant figure and would attract a lot of attention. With that being the case, it is not a huge surprise that we have pulled back just a bit. However, as we have pulled back from here it is likely that we could go looking towards the $3.80 level underneath which was the previous high.
Looking at this chart, there is a bit of a bullish flag that we have recently broken out of, it looks as if the measured move is to reach towards the $4.40 level. That being said, it is also worth noting that the previous consolidation area between the $2.40 level and the $3.40 level also measures to reach towards the $4.40 level as well. That being the case in of course the fact that we have such a major heatwave out west suggests that the demand should continue to be a major driver of this market.
At this point, there is no interest on my part of shorting until we get the heatwave out of the way. I do think that the natural gas markets will eventually roll over, because natural gas is oversupplied from a longer-term structural situation. In fact, I am paying close attention to the natural gas markets due to the fact that they are more than likely going to be one of the first commodity markets to rollover if in fact the commodity boom starts to fade. Read Full Story »»» DiscoverGold