Advertisement
Advertisement

Natural gas markets rally, then fell on Wednesday

By:
Christopher Lewis
Updated: Apr 19, 2018, 04:52 UTC

Natural gas markets rallied significantly during the trading session on Wednesday, reaching as high as the $2.78 level. However, we ran into a bit of resistance, and we are getting close to the major resistance barrier in the form of the $2.80 level.

Natural gas daily chart, April 19, 2018

Natural gas markets continue to be very noisy, as we rallied initially during the day on Wednesday, but then pulled back from the $2.78 level. I believe that the market should continue to be very noisy, but I also believe that we continue to see a lot of bearish pressure in this market. Ultimately, the market should continue to see a lot of choppiness, so if you are patient enough you should get the opportunities that you need. I believe that the $2.80 level is going to be a major barrier again, and once it occurs, I am more than willing to take advantage of some type of exhaustion at that level. Otherwise, we could break out to the upside and then go to the $3.00 level above, which is even more resistant.

I believe that natural gas will continue to remain suppressed overall, especially during the summer months in the United States, as it will drive down a massive driver of demand. I believe that the market continues to be difficult to buy, and only the altar short-term type of traitor would look to go long. The average natural gas traitor is probably going to keep short-term positions on at best. I don’t have any interest in trying to hang on to this market longer term, and I believe that eventually we will probably have longer-term forces come back into the market to the downside. With the oversupply of natural gas being a systemic problem, rallies will eventually offer opportunity.

NATGAS Video 19.04.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement