Natural gas markets have broken resistance

Natural gas markets have rallied significantly during the trading session on Tuesday but found a bit of resistance as of course we have longer-term concerns. However, we broken above the $2.82 level, an area that was resistance. I think that breaking above there signals that the market should continue to go higher, and as a result I believe that the market will probably continue to go higher over the next several sessions, and perhaps the next couple of weeks. However, I think it’s only a matter of time before the sellers come back, but obviously breaking above this resistance level is a sign that we will eventually look towards the $2.90 level, and the massive significantly resistance barrier at the $3.00 level.

Ultimately, if we break down below the $2.78 level, then the market will probably fall towards the $2.70 level, but I think at this point it’s obvious that the buyers have the upper hand. The market continues to show volatility, but I think that the overall attitude is to the upside. I think that short-term trading will continue to be the best way forward, and I think that is not until we the form a daily shooting star, weekly candle that show signs of exhaustion, or something like that that we can start selling. The alternate scenario of course is that we break down below the $2.78 level, which of course shows a breakdown of support. The volatility continues to be an issue, but a small position that can be added to is probably the best way.

NATGAS Video 16.05.18