Natural gas markets lose 1.5% during the trading session on Friday

Natural gas markets fell 1.5% during the session on Friday, showing signs of exhaustion and perhaps a return to the bottom of the short term consolidation area. I think it’s only a matter time before we break down, especially when you look at the weekly candle which looks so poor. If we can break down below the $2.84 level, then the market goes down to the $2.80 level. Overall, I think that we go back and forth in a bid to build up enough momentum to make the next significant move.

Overall, I do think that it is a move lower, so a rally at this point I think could be sold at the first signs of exhaustion. The $3.00 level above is massive resistance, and I think that it’s only a matter of time before sellers would come and if we get closer that level. If we did break the $3.00 level, then we could go a bit higher, perhaps up to the $3.10 level above which has been even more resistive. I like the idea of selling rallies, and I like the idea of selling a break down. I believe that ultimately we are starting to see the market roll over again, as it had gotten ahead of itself over the last couple of months. Inventory builds have been positive for a while, so I think it’s only a matter of time until we see sellers jump into this market taking advantage of any type of over exuberance.

NATGAS Video 11.06.18