Natural gas markets continue to go sideways in a slightly negative tone

The natural gas markets have gone sideways in general, drifting a little bit lower overall. I think that the market breaking down below the lows of the session on Wednesday, the market could break down to the $2.80 level after that. That’s an area that is massive in its importance, and it looks likely that the market breaking down below the level will probably unwind it and have it go looking towards the $2.75 level after that which is the bottom part of the daily uptrend channel. If we do rally, I think that it will be a selling opportunity after what we have seen over the last couple of days, and the milder temperatures forecasted to be seen in the United States.

I believe that the market will continue to show a lot of volatility as per usual, as natural gas markets are a bit thinner than some of the other futures markets that we follow. Oversupply will continue to weigh upon the overall value of the natural gas markets, so I think that the volatility will continue to offer plenty of opportunities if you are patient enough. I believe that the $3.00 level above would be a major resistance barrier, and I think it will be almost impossible to break above there in the short term. The markets continue to be very dangerous, so keep your position size small going forward. I think that you can add to your position if you continue to see the position work out for you.

NATGAS Video 31.05.18