Natural Gas markets bounce around during positive Friday session

The natural gas markets initially pulled back during the trading session on Friday but found enough support near the $2.78 level to rally towards the $2.80 level, perhaps even trying to take out the $2.82 level. If we get above there, the market will then rally in a bit of the momentum move, but I think there is a massive amount of resistance at the $3.00 level. At this point, I think that if we were to break down below the $2.78 level, the market would probably unwind down to the $2.75 level. A breakdown below there then sends the market down to the $2.70 level, an area that started this rally to begin with.

Currently, there is a significant amount of noise in the market, but I think if we were to break down from here, it would probably unwind rather quickly, because this market does tend to be very noisy and of course there is a longer-term consideration when it comes to oversupply of natural gas out there. We don’t have it at the moment, but most certainly longer-term we will continue to have plenty of natural gas supply. I think that the market will continue to be noisy, and I think that the market continues to be very dangerous for those who do not have the appropriate account size. If you are a futures trader, you can find yourself $200 poorer very quickly. However, if you have the ability to trade CFD markets, you can take advantage of these levels a little easier.

NATGAS Video 14.05.18