Christopher Lewis
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Natural gas daily chart, April 02, 2019

Natural gas markets rallied a bit during the trading session on Monday, bouncing from a relatively low position, but at this point we are not at the bottom of the overall range so it’s not necessarily a trade signal. Because of that, I’m a bit cautious about putting any money to work as I recognize that we have a relatively obvious range from which to trade. We have the $2.90 level above which begins a $0.10 resistance barrier all the way to the $3.00 level. Any signs of exhaustion in that area invite selling from what I see.

NATGAS Video 02.04.19

Just below at the $2.60 level, I believe that the there is a massive amount of support that extends down to the $2.50 level. Overall, this is a market that should stay within this range so there’s no need to get cute with it and try to force the issue. I’m waiting until we get into one of the outer areas to put money to work. I think we are stuck in this range for the majority of the year, as are simply nothing to push the market around in one direction or another.

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If we did break out of this range, that would of course be a major turning point in this market and could bring in longer-term money. However, this is one of the situations where it’s better to play the market that’s offered to you instead of wishing for something that isn’t.

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