Natural Gas markets chop around during the Friday session

The natural gas markets rallied a bit during the trading session on Friday, but also gave back a bit of the gains seen. I think that the market is probably going to go looking towards the $2.80 level based upon the longer-term charts, and because of this I think that short-term traders will continue to push this market higher, but I think that the sellers certainly have more in the way of momentum and strength longer term. I think that the $2.80 level should be important, but at the first signs of exhaustion I think that we will start selling off. If we do get a break above the $2.80 level, I think that the market then will try to reach towards the $3.00 level. That is an area that’s even more resistive, and I would become even more aggressively short of the market on signs of exhaustion in that area.

If we roll over from here, I would not start selling until we get down below the $2.68 level, as it is a supportive region. That could online this market down to the $2.65 level, and then eventually the $2.60 level which is a major support level that extends down to the $2.50 level. I believe that the market should continue to be very noisy, but overall, I have much more faith in the downside than anything else. In general, patience is going to be needed more than anything.

NATGAS Video 02.04.18