Natural gas markets fell a bit during the trading session on Monday as traders came back to work. The $3.00 level above should continue to offer a lot of resistance, and I think that the level will be crucial. If we can break above there, I think there is a significant amount of resistance that extensive the $3.10 level, as seen recently. I think that we will probably see sellers sooner than buyers, but we could get one more attempt to try to break to the upside. The $2.80 level underneath continues offer support as well, so I think that this will continue to be very noisy to say the least.
Market participants continue to focus on the short-term weather in the United States, as well as geopolitical concerns when it comes to Eastern Europe, and Russian metal wings, but at the end of the day I think that natural gas will continue to be oversupplied for the longer-term, so I’m waiting for an opportunity to start shorting for a larger move. We don’t have it yet, but certainly we are getting close to some areas that could present this opportunity. Quite frankly, if we break above the $3.10 level, we could be turning around the entire attitude of the market for the longer-term, something that I don’t see happening in the near term. I believe that we will see $2.80 relatively soon.