- The natural gas markets initially drifted lower during the early hours on Thursday, breaking below the $4 level only to turn around and show buyers coming in.
- That being said, we are getting close to the end of the season for natural gas, but there are also some geopolitical issues out there as well.
- So, it'll be interesting to see how this plays out.
The $4 level is a bit of a fulcrum for natural gas price at the moment, and we do have the 50 day EMA below. So, I think there's probably some technical support. The question is whether or not there is going to be fundamental support. While there are a lot of concerns out there when it comes to EU gas supply coming from Russia or not coming from Russia. The reality is that demand will start dropping pretty quickly and as a result, I think you will eventually see that flush that we get at the end of every winter going into spring. The one problem right now, of course, is that the winter was especially brutal. So, it is going to take some time for those inventory numbers. to pick back up in America.
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This Spring is a bit Difficult
So that makes the typically easy sell off to trade quite a bit more difficult this year. This does happen from time to time and sometimes you'll get stopped out a couple of times along the way. As long as you position size correctly, it's not a big deal. It's just a little bit frustrating. If we can close below the $4 level on a daily close, at that point, I'm going to start maybe getting short here. I don't want to buy natural gas because there's far too many things that could just turn it right back around at the moment and it is worth noting that the fundamental demand itself is going to be dropping rapidly. It's beautiful here in the eastern part of the United States and we are starting to see spring show up so take that for what you will.
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