Natural gas markets broke out during Thursday session

The natural gas markets broke above the $2.80 level, which of course is a very bullish sign. Now that we’ve done that, we could get a short-term opportunity to buy futures to take advantage of a quick pop. I think that there is a lot of resistance above at the $3 level, and any sign of exhaustion should be a selling opportunity. Alternately, if we break down below the $2.78 level, then we could start to sell off and go much lower. In general, the market should continue to be noisy, but I think volatility is something that you should be able to deal with if you get involved. The natural gas markets are no joke and can terrify new traders. However, if you get the ability to trade the CFD markets, you can open a small position. By doing so, you can ride out a lot of this noise. However, I think that futures markets are a great way to play this commodity, if you have the appropriate account size to handle risk management.

Ultimately, I think that the warmer weather in the United States will eventually have sellers involved. So, in conclusion, I believe in buying short-term rallies for small gains, but if we turn around a breakdown below the $2.78 level, it’s an opportunity start selling again. Otherwise, if we rally from here I think that the $3.00 level would be an extraordinarily negative area to start shorting.

NATGAS Video 27.04.18