NatGas Prices Expected to Fall Further Amid Hedge Fund Short Positions

Natural gas prices are expected to continue falling, according to recent market analysis. Hedge funds remain net short on natural gas, while retail traders hold a significant portion of net long positions.

One untapped demand zone has been identified at approximately $2.36 since 2024, suggesting potential support for the price. However, this may not be enough to counterbalance the ongoing selling pressure from producers and leveraged funds that continue with short hedging.

The analyst predicts a further decline of -12% in natural gas prices over the next few days or weeks, indicating a potential downward trend. This could lead to a significant adjustment for traders who are holding onto their losing positions.