Natural gas markets went sideways, and then fell significantly, only to turn around and bounce towards the $3.00 level as well. This is an area that is psychologically important, so I think that we are going to continue to see sellers jump into this market as the oversupply of natural gas continues to be a major problem. I believe that rallies are to be sold, and that might be what we are seeing now. This is obviously a bullish turn of events during the day, but longer-term we still have a lot of problems and I believe that waiting for selling opportunities is probably going to be the best way to play this market. Because of this, I am looking for exhaustive candle to take advantage of, or perhaps a “lower low.”
Selling rallies only
I have no interest in buying this market, so the only thing that I can do is sell rallies. I believe that they offer an opportunity to get short again, and I believe that there is a significant amount of resistance going as high as $3.10, which is far above recent action. I think that if you continue to sell rallies, you will continue to be rewarded, but there’s obviously a lot of volatility and noise in this market, so given enough time I think that we will get more opportunities going forward. My target is the $2.85 level, and then a breakdown below there to the $2.75 level as well.
NATGAS Video 14.7.17
This article was originally posted on FX Empire