Natural Gas Prices May Fall Further Amid Imbalance in Market
A recent analysis of trading data suggests that natural gas prices may continue to fall. According to a TradingView post, hedge funds remain net short on natural gas, while retail traders are still holding onto their long positions.
These opposing views have created an imbalance in the market, leading to further unwinding of long positions by producers and leveraged funds who are continuing with short hedging strategies.
The analysis also points out that there is an untapped demand zone at approximately $2.36 since 2024, which could potentially provide support for natural gas prices.
However, the analyst warns that a further decline of -12% in natural gas prices is likely over the next few days or weeks as retail traders hold onto their losing positions and producers continue to short hedge.