Natural Gas Price Set to Surge as Commercials Accumulate Long Positions
Natural Gas has been trading at historically low levels, down by over 70% from its August 2022 peak of $9.75.
The CFTC Commitment of Traders report shows commercial hedgers reaching a bullish extreme, accumulating long positions aggressively at current levels.
Summer cooling demand is about to ramp up, with utilities hedging their fuel costs months in advance, exactly what the COT data is showing right now.
A 9.4/10 quality demand zone sits at $2.20 on the weekly chart, which is the level to watch.