Natural gas markets go sideways during Thursday

Natural gas markets did very little during the trading session on Thursday, as we continue to hover around the $2.92 level. The previous uptrend line which was the top of the up-trending channel should offer a bit of support, somewhere near the $2.88 level. I think that it’s only a matter of time before we get buyers coming into this market from what I’ve seen, but I do recognize if we were to break down below the $2.86 level, we could reach down to the $2.80 level after that.

I think that the market will eventually roll over, but in the short term I think that there is still an upward proclivity in general. There will be extended demand in the United States as we enter the summer months, so that of course will help in the short term. The $3.00 level of course is going to be a massive resistance barrier, so I don’t think we will break above there. If we did, that would be quite a bullish sign obviously. I think at this point, we will see another move higher, followed by a return to the consolidation that we had been in for so long. If we do break down from here, then we could find support at the $2.75 level at the extreme bottom of the up-trending channel, but that seems to be less likely to happen as days go by. Short-term, I bullish. Longer-term, I’m very negative of this market.

NATGAS Video 25.05.18