The natural gas markets the shot much higher during the day on Tuesday, reaching towards the $3.10 level above. This is an area that has a lot of resistance attached to it though, so having said that I think it’s only a matter of time before the sellers return. I don’t have any interest in buying this market, but even if we did break out to the upside I think you will only see even more resistance near the $3.25 level. This is a market that should continue to be very negative overall as we have a so much in the way of oversupply and most certainly a lack of demand. The market should continue to see a lot of volatility, but given enough time I think we will in the end go back towards the selling pressure.
Not interested in buying
No matter what happens, I’m just not interested in by natural gas because I believe that we are in a secular bearish market. I think that the market then eventually reach down to the $3 level, and if we can break down below there I think that the market will then go to the $2.95 level, and then eventually the $2.85 level. I have no interest in trying to ride the waves higher, because every time we rally, massive selling pressure reappears in the market given enough time. I don’t see any reason why that would change any time soon.