Natural gas markets went back and forth during the week, dancing around between the $2.50 level on the bottom and the $2.75 level above. This is a market that continues to go back and forth, as we are trying to decide what to do with his massive support level. If we can break above the $2.75 level, that’s a very bullish sign but we would probably be best served to sell at higher levels, such as the $3.00 level overhead.
NATGAS Video 18.02.19
If we do break down below the $2.50 level, that would be extraordinarily bearish, but I think at this point we are getting oversold, so it’s very likely that a bounce is necessary. If you are patient enough, you should have an opportunity to sell natural gas from higher levels, something that has worked more than once. I think the $3.00 level is the beginning of massive resistance, but I also see it at the $3.15 level as well. Longer-term trading continues to be decidedly negative, but at this point you have missed the trade as far as shorting for the big money is concerned. Longer-term traders will be a bit hesitant to put money into the market unless there is some type of room to move. Right now, it does look like we have a lot of real estate.
Please let us know what you think in the comments below