Natural gas markets continue to see volatility during Tuesday session

Natural gas markets pulled back a little bit during the trading session on Tuesday, only to find buyers near the $2.72 level. I believe that the market should continue to go higher, perhaps reaching towards the $2.80 level above. That is a level that is important on the longer-term charts, and I believe that we could get sellers in that area based upon exhaustion. If we get exhaustion, I am more than willing to start selling, perhaps aiming for the $2.70 level, and then the $2.60 level under there. Natural gas markets continue to struggle overall, but occasionally we get a bounce that offers a bit of a relief.

I like the idea of selling rallies as they show signs of exhaustion, and even if we do breakout to the upside, I anticipate that the $3.00 level will be far too resistive to continue to go higher. I believe that the $3.00 level is a longer-term level that people will pay attention to, and I anticipate that there would be even more selling pressure at that level. I don’t have any interest in trying to buy natural gas, because the overall supply and demand situation should continue to favor the downside. The volatility in this market can sometimes be due to the lack of volume, as the natural gas markets are much thinner than many of the other futures markets. If you are patient enough, you should see signs of exhaustion that you can take advantage of, as they prove themselves to be selling opportunities repeatedly.

NATGAS Video 18.04.18