Natural Gas falls on Tuesday

The natural gas markets look likely to remain noisy, but I think at this point we are looking at best consolidation. We have gotten a bit ahead of ourselves longer-term, as the $2.95 level is the beginning of significant resistance extending to the $3.00 level. I think that selling rallies will probably continue to be the way longer-term traders approach this market. I believe that it’s only a matter time before they take over, but we may get short-term burst in the meantime. I think that it will be very difficult to break above the $3.00 level now that we have stagnated a bit, and I do recognize that there is a major uptrend line underneath, coinciding roughly with $2.77 below.

I think that the market continues to see a lot of noise, so therefore trading more of a range bound system with a slightly downward slant might be the way to go. If we did manage to break above the $3.00 level, the next major test of resistance will be closer to the $3.10 level, which would be extraordinarily difficult to overcome. If we did break above there, then it would change everything. Until then, I anticipate that short-term rallies will offer opportunities for longer-term traders to get short again. At this point, it comes down to your timeframe as to which direction you are trading. Keep in mind that weather reports should be paid attention to in the northeastern part of the United States.

NATGAS Video 06.06.18