Natural Gas rolls over during Friday trading

Natural gas markets broke down a bit during the trading session on Friday, slicing through the $2.80 level, and then to the $2.75 level after that. I believe that the market should continue to be very noisy, and I think that it’s likely that we will continue to see opportunities to sell every time the market rallies. Signs of exhaustion a reason enough to go short, as the oversupply in the natural gas markets continue to be a major issue. The $2.80 level has been resistive more than once, and I think it’s likely that we will probably try to go down to the $2.65 level after that.

The $2.60 level is essentially the bottom of the overall consolidation, and I think it will hold at support going forward. However, if it does not the market will more than likely then go to the $2.50 level. Natural gas production in the United States is up over the last year, and that should continue to be a major factor going forward. If we did break above the $2.82 level, then I think the markets free to go towards the $3 level above, in a short-term buying opportunity at best. However, I think that it’s only a matter of time before the longer-term bearish pressure comes on board, and the sellers get aggressive again. The choppiness continues to be a major issue in this market, so that’s why prefer selling rallies as opposed to trying to sell some type of breakdown.

NATGAS Video 30.04.18