Natural Gas rallies significantly during the Monday session

The natural gas markets rallied a bit during the trading session on Monday, gaining over 1.25% as the Americans stepped on board. I suspect that there is a lot of resistance just above the $2.80 level though, so I look at this is a market that we should be paying attention to now for potential selling opportunities. When you look at the MACD on the hourly chart, we are starting to cross in the overbought area, with the histogram falling into the negativity. I think that it is only a matter of time before the sellers can come back in, and at the first signs of exhaustion I’d be more than willing to start selling.

This lends itself to be a possible futures market trade, as it gives you the ability to use leverage to your advantage, as there has been a well-defined range. If we can break above the $2.80 level, then I think perhaps the $3.00 level above is resistance. I believe that the area in that range would be very resistive, so it’s only a matter of time before the sellers would take over. Quite frankly, I believe that the $2.80 level is probably going to be about as far as we go on the short-term, but this remains to be seen. Overall, we have seen a lot of $2.80 based resistance, and I would anticipate until proven otherwise, that should continue to be an area where we can place trades. I have no interest in buying this market anytime soon.

NATGAS Video 16.04.18