Natural Gas markets fall slightly on Wednesday

Natural gas markets should continue to be very noisy as is typical, and to me it looks as if we are going to go looking towards the $2.80 level underneath. Rallies at this point will probably be selling opportunities, but I think that a bounce from the $2.80 level could be a bit more significant. If we break down below the uptrend line that I have drawn on the chart, which is roughly near the $2.78 level, then I think it’s only a matter time before you even lower.

The $3.00 level above is massive resistance, and I think at this point it’s going to be very difficult to break out above that level. I think that the market continues to find a lot of volatility based upon weather reports coming out of the United States, and I think that will continue to be the case. Keep your position size small and assume that we are going to continue to see a lot of back-and-forth action. Because of this, I am starting to look at this market as consolidating between the $2.80 level on the bottom and the $3.00 level at the top. Expect volatility, but that’s nothing new if you have been trading natural gas recently. I would suggest the CFD market, because you can keep your position size small enough to keep yourself out of major trouble. I think that it’s only a matter time before we get some type of clarity, but in the meantime play the market safely.

NATGAS Video 07.06.18