Natural Gas Markets Get Bump to the Upside

Natural gas markets have gapped higher to kick off the trading week, as we have seen a lot of concerns about the Ukrainian border, even though it only has a limited effect on this contract, due to the fact that it is based on the US trading. At this point, I do think it is probably only a matter of time before sellers come back in so I would love to see an opportunity to short a nice pop higher. Whether or not we get a big move is a completely different question at this point in time. I would be more than willing to jump into this market and short any signs of exhaustion above.

NATGAS Video 15.02.22

That being said, the $4.50 level above would be an excellent area to find sellers that I can join, and if we show hesitation, I will be all over it. On the other hand, we could drop down below the $3.75 level, opening up the possibility of a move towards the $3.50 level. At that point, we could then break down towards the $3.00 level which is my longer-term target.

Because of this, the market is very likely to see a lot of volatility, but I think when we start to look at the overall demand for natural gas, it will drop quite drastically as we are getting very close to the end of the winter in America, which of course is when we start to see this contract fall apart as natural gas is the major way that homes in the northeastern part of the United States are heated.

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