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The natural gas markets rallied initially during Thursday trading, but found enough resistance to the $2.69 level to roll over and drop. I think that the $2.70 level above is even more resistive, with the $2.60 level underneath offering support. There is a significant amount of support underneath extending down to the $2.50 level, and at this point I believe that every time we rally, you need to start shorting natural gas markets. I believe that the attitude of this market continues to be very range bound, so if you are short-term trader you can take advantage of this.
I like selling this market on short-term exhaustive candles near the $2.70 level, and again at the $2.75 level. I don’t have any interest in buying this market, because there’s so much in the way of negative pressure and of course oversupply in general. I believe that this market will continue to offer nice trading opportunities for those who can take advantage of the futures market, and of course have the proper account size. I believe that the market continues to be very noisy, but most certainly is easier to sell than buy. I think that the general attitude of this market won’t change anytime soon, as the United States and Canada both have more than enough natural gas to supply the world multiple times over. If we were to break down below the $2.50 level, the market will implode and go much lower from there.
NATGAS Video 13.04.18
This article was originally posted on FX Empire