Natural Gas Markets Fill Previous Gap

If you have been following me here at FX Empire, you know that I said this gap above could get filled. We have finally done that, and now I am looking for short selling opportunities. Yes, there is a bit of cold weather coming to the northeastern part of the United States, but we are so close to the end of winter right now that I can almost taste it. In fact, Canadian geese flew over my house this morning, which is always one of the first signs that spring is about to hit. Because of this, demand for natural gas will certainly drop.

NATGAS Video 17.02.22

A lot of what you are seeing in this market as a reflection of volatility everywhere. Natural gas is a very thinly traded market at times, so it does not take a lot to push the thing around. It is for that reason that you should look at the longer-term fundamentals and simply only place a trade when things line up. There is no reason to think that natural gas can sustain some type of longer-term rally at this point. With that in mind, I would be looking for signs of exhaustion on short-term charts and shorting this market rather soon.

I still think that we go looking towards the $3.50 level before this is all said and done, and quite frankly would not be surprised to see natural gas break down below there and go looking towards the $3.00 level afterwards. I am not interested in buying, and quite frankly if we do shoot higher, it only increases my interest in shorting.

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