Natural Gas markets rally again on Friday

Natural gas markets rallied a bit during the trading session again on Friday, gaining over 0.5% during the day. Ultimately, I think that the market should continue to go higher, perhaps reaching towards the $3.00 level which is a juicy target for traders to reach towards. I think that short-term pullbacks could be buying opportunities, with the $3.90 level underneath offering support based upon the previous uptrend channel that of course is very prominent.

I think that the market should continue to be very choppy, but ultimately I think that the three dollars level is far too attractive to forget. I think that area should offer a bit of resistance, and I think that the market could drop from there. I think that the market breaking above the $3.00 level should send this market much higher, perhaps reaching towards the $3.10 level. That level is even more resistive, so I think that although we are bullish in the short term, I think that it’s only a matter of time before the sellers come back, but in the near term it looks very likely that we will continue to see a lot of buying pressure based upon news that the Chinese are about to start buying more natural gas from the United States, providing a certain amount of support and demand.

I think that if we were to break down below the previous uptrend line that was the top of the channel, we could drift towards the $2.80 level. However, that doesn’t look likely to be the case in the short term, and I would continue to favor the upside.

NATGAS Video 28.05.18