Natural Gas Price Analysis – Natural Gas Jumps as We Start June Contract

Natural Gas Technical Analysis

The natural gas market has rolled over to the June contract, and as a result, we have seen this market offer a potential opportunity. Cooler than expected temperatures are hitting the United States, and while that is certainly going to drive the price of natural gas higher, the reality is that we are talking about a very short-term potential move.

That being said, I think you have to look at this as a market that will remain very noisy and very heavy up top. So, what I am looking for, and I have been saying for a while, is a bit of a bounce that I can start shorting. The $2.75 level is an area where I would consider, so is the $3 level, assuming we can get to that point.

Market Resistance and Shorting Strategies

I have no interest whatsoever in trying to buy natural gas. It is a fool’s errand at best and will more likely than not only end up in tears anyway. So, with that, I am just simply waiting for the first signs of exhaustion that I can take advantage of in this market.

I believe a short-term selling opportunity will present itself. It is not a short-term and hold, nor is it a buy-and-hold. This is the time of year when you compress the trading range, but you have more selling pressure than anything else. Because of this, I am looking to see signs of exhaustion that I can jump on in this seasonal market.

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