Natural gas markets of course have shown a proclivity to go lower as of late, as every time we rally the sellers step in. That was no different this time, as above the $2.20 level the sellers came out in force. That being the case, it’s very likely that we are going to see a lot of concern when it comes to the natural gas markets. That being said, there is the $2.00 level underneath that will of course be psychologically important.
NATGAS Video 05.08.19
I anticipate that we will see some type of bounce from there, but I wouldn’t hold my breath for it to be a trend change. After all, it is the wrong time of year to expect a lot of bullish pressure in this market, and I do think that we are probably going to see a lot of uncertainty. With this, I think that the market participants continue to look at this is a market that gives you plenty of opportunity every time it rallies to start selling.
I do think that we could very well break the $2.00 level but I also recognize that the “law of big figures” comes into play. It’s not until we break above the $2.50 level that I can take any rally seriously, and quite frankly I don’t expect to see that based upon the weekly candle stick that just formed. Short-term traders continue to be sellers, longer-term traders don’t have as much room to move.
Please let us know what you think in the comments below