Natural gas markets deepened to kick off the trading session on Monday, immediately falling below the $ 4.00 level. At this point, the market looks set to continue struggling to find its balance, as temperatures in the United States continue to warm. Obviously this has a major influence on the demand for natural gas, and of course production is catching up with the pandemic and the hurricane. That being said, it makes perfect sense for natural gas to collapse.
NATGAS video 07.12.21
The gap can be closed, but frankly anywhere near the $ 4.15 level I’ll be a burnout seller as the gaps in the futures markets tend to close and then offer resistance. or an important support. That said, the market will remain very noisy, and will nonetheless favor the downside. Also, we’re already trading the January contract, so it’s more likely than not that we’ve seen the high for the winter.