Natural Gas Markets Continue to See Resistance

Natural gas markets have gone higher during the trading session on Tuesday but have since turned around to show signs of hesitation. The $5.00 level of course continues to attract a certain amount of hesitation, and therefore I think it makes sense that the area offers resistance yet again. That being said, it is the wrong time of year for natural gas to simply take off to the upside, despite the fact that the European Union is now talking about heading into the gas markets off-season to keep supply up heading into the next winter.

NATGAS Video 23.03.22

If we break down below the bottom of the candlestick for the trading session on Tuesday, then it is likely that the market could go looking towards the $4.50 region, which is where the 50 Day EMA currently resides. Ultimately, this is a market that I think is going to continue to be very noisy, so keep your position size reasonable, and recognize the market will continue to be very volatile.

On the upside, if we were to break above the highs of the trading session on Tuesday, then it is likely that we could go looking towards the $5.50 level, which is an area that has been resistant more than once. Breaking above that level would be massive for the buyers, and therefore it is very likely that we would see a huge move to the upside. I do not expect that, but it is a possibility, and you always need to look at both sides of the coin, especially in these extraordinarily volatile times. I will be trading this market with smaller than usual positions.

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