Natural gas markets drifted a bit lower during training on Wednesday, as we continue to see softness in this commodity. I believe that rallies will continue to be sold, but quite frankly I would like to see this market rally a bit more before I put money into the market. I don’t have any interest in buying, I believe there’s far too much in the way of negativity in this market. With a little bit of luck, we may get some type of bounce from the storage numbers, so that we can start shorting again. I believe that the $2.80 level above is massive resistance, so I’d be more than willing to sell any signs of exhaustion in that area.
I think that if we break down below the $2.65 level, we probably drift down towards the $2.60 level. Overall, I believe that this market will continue to be very choppy and difficult, but I believe that in the end, sellers will prevail. The bearishness in this market is a structural problem, so if we get some type of short-term reaction, I’m more than willing to take advantage of that bounce to start shorting, and I believe that the $2.50 level is massively supportive. The $3.00 level above is even more resistive, so I would become even more quick to short this market as we approach warmer temperatures in the United States over the next several weeks. I have no scenario in which a willing to buy.