Natural gas markets fell during trading on Thursday, testing the bottom of the wedge that we have been in. As I have been telling you, I think we have already topped out for the year, as the $5.00 level is simply far too much. Likely that we will break down eventually, perhaps reaching to the $4.00 level. If you break down below that level, then you see this market go much lower. I think that short-term rallies are still opportunities to sell at a market that is getting ahead of itself. I believe that eventually we will break down below the $4.00 level, and then go looking towards the gaps below. The $3.75 level is a target, and then the $3.33 level.
NATGAS Video 07.12.18
I believe that natural gas is getting far ahead of itself, and I believe that the we are looking at a scenario where suppliers will eventually pound the market with the massive amount of excess, because quite frankly they haven’t seen prices like this in quite some time. I believe that we will have an excellent shorting opportunity rather soon, so be patient, but certainly I would be aggressive on exhaustive candles on short-term rallies, at least until we get the break down that I’m looking for. Once we get that, then we begin to look at longer-term trades in my estimation. I have absolutely no interest in buying natural gas at this point.
