Natural gas markets pull back during the session on Thursday

Natural gas markets fell during the trading session on Thursday, breaking below the $2.80 level. The $2.78 level under that has offered support and has been interesting in the past. When I look at the hourly candle as I record this, you can see that there is a neutral candle that has a lot of volatility attached to it. Currently, I believe that the $2.80 level being broken to the upside would be a very bullish sign and should send this market continuing to the upside. However, we break down below the $2.77 level, then I think we will unwind towards the uptrend line underneath. The $2.72 level below is where the line coincides, and I think if we test that area we should see buyers. However, break down below that uptrend line would be very negative, reaching towards the $2.68 level, and that eventually to the $2.60 level.

I believe that there is a lot of noise in this market, but that’s typical for natural gas, and I believe that the volatility will continue to be very difficult to deal with. At this point, I don’t think we ever get above the $3.00 level this year, and I do feel that the rallies will eventually be sold. However, the short term we do continue to see impulsive move. After all, all one has to do is look back at the 10^th of the month and you can see that we are testing the top of the impulsive move. I think the buyers will more than likely try to come back, but a break down below $2.77 offers a short-term selling opportunity.

NATGAS Video 18.05.18