Natural gas repelled at resistance again on Thursday

The natural gas markets rallied significantly during the trading session on Thursday, reaching towards the $2.96 level. We have turned around of form a bit of a shooting star though, at least on the hourly chart and that is a very negative sign. I think that if we can break above the $2.96 level, we could find plenty of resistance between there and the $3.00 level, so I think it’s only a matter of time before we start to see selling pressure. If we did break above the $3.00 level, then the next target would be the $3.10 level above, therefore I think it’s only a matter time before the longer-term traders come in and punish what has been an impulsive move to the upside.

If we do fall below the $2.90 level, it’s likely that we will go to words the $2.85 level, and perhaps even the $2.80 level which is much more important from a longer-term perspective, as it has been massively supportive and resistive at different times over the last several months. As I record this video though, it does look like the natural gas market is trying to roll over and give back some of the gains that had been found early in the day. I would be very cautious about putting too much money to work in a short amount of time.

NATGAS Video 08.06.18