Natural gas markets tried to rally a bit during the trading session on Thursday, as we continue to see a lot of noise. The markets have sold off rather viciously as of late, and quite frankly it’s only a matter of time before the sellers return. At this point though, I wish to see some type of rally that I can start selling, because selling down here would be “chasing the trade”, something that I never do. The $3 level above should be massive resistance, and I think it’s going to be difficult to break above. If we do, then there is resistance to at least the $3.10 level.
I would love to see some type of rally that I can start selling, because it will allow us to build up the necessary momentum to break down even further. If we did break above the $3.10 level, although a very bullish sign, I still would be waiting to sell. The theme here is simple: never buy natural gas. We have left the seasonally bullish time of year, and now I think it’s only a matter of time before the sellers have their way as supply will start to increase as temperatures rise in the northeastern part of the United States. We had several states freeze over in America, and that made fracking all but impossible for the short term. However, it’s likely that they are going to start pumping out more output going forward.
