Natural Gas markets continue to chop sideways overall on Friday
Natural gas markets continue to bounce around the $2.70 level, as an area of importance. It looks as if the market is trying to go back and forth, perhaps in a short-term range bound type of situation. This would allow for scalping and intraday trading, but beyond that I think it’s can be difficult to do much with this market until we get an impulsive move, hopefully to the upside that we can start selling. That would give us the opportunity to go with an overall downtrend that we have seen, on the longer-term charts. I believe the natural gas continues to struggle with a major oversupply issue, and that the $2.80 level is significant resistance doesn’t hurt for the selling situation either. Beyond that, the $3.00 level above is even more resistive.
I believe that the $2.60 level underneath is important support, extending down to the $2.50 level. A breakdown below the $2.50 level would be catastrophic, sending this market much lower. At that point, I’m not sure where the bottom would be as the $2.50 level has been so crucial longer term. I have no interest in buying this market, unless we were to be able to start scalping again. Beyond that, I wouldn’t expect much as the best trading is most certainly to the downside, and after impulsive moves to the upside. I like the idea of scalping small positions, and selling larger ones after rallies, maximizing the profits.
NATGAS Video 09.04.18
This article was originally posted on FX Empire