Natural gas markets were volatile during the session again on Thursday, as we continue to bounce around the $2.80 level. I still see the $2.85 level above as resistance, and I think that the sellers will come back in if we try to break above there. Even if we do get above there, there is a gap that extends to the $2.92 level, so the sellers will certainly stand up and take attention to that move. I believe that this is a bearish market overall, so I don’t have any interest in buying, so that being said I don’t think that the underlying fundamentals of the market offer higher prices anytime soon.
Selling rallies
I continue to sell rallies, and I believe that a move below the $2.75 level is coming. As soon as we can break down below there, the market should then go down to the $2.50 level underneath. That is a massive floor in the market, I think it would be very difficult to break down below there. However, longer-term we certainly have more supply than demand, and I think that will continue to be the case. Ultimately, the market should continue to see volatility to the downside and I think it offers nice short-term selling opportunities for those of you have the ability to treat short-term charts.