Natural gas markets rallied a bit during the day on Thursday, and then shot much higher as the Americans came on board. However, we are approaching a very
Natural gas markets rallied a bit during the day on Thursday, and then shot much higher as the Americans came on board. However, we are approaching a very important resistance barrier in the form of the $3 handle, and therefore think it’s only a matter of time before the sellers return. I’m waiting to see signs of exhaustion to take advantage of this recent impulsivity, as I have no interest in buying. The $3.00 level above is the beginning of massive resistance extending towards the $3.10 level above. Because of this, I’m waiting for some type of exhaustive candle to take advantage of. Right now, I don’t have it but I’m willing to be patient enough to wait for that move.
I continue to sell rallies, and this is a great one to take advantage of. The volatility of natural gas continues, and I think that it is only a matter of time before this overextension gets beat back down. It is not until we break above the $3.10 level that I would consider buying, because that would be a significant break out. We do not have one, even though the last couple of sessions have been rather impressive. Remember, natural gas tends to be a bit more thin than other markets, so the moves can look a bit more drastic.
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.