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Natural gas markets rally, then fell on Wednesday

Christopher Lewis

Natural gas markets continue to be very noisy, as we rallied initially during the day on Wednesday, but then pulled back from the $2.78 level. I believe that the market should continue to be very noisy, but I also believe that we continue to see a lot of bearish pressure in this market. Ultimately, the market should continue to see a lot of choppiness, so if you are patient enough you should get the opportunities that you need. I believe that the $2.80 level is going to be a major barrier again, and once it occurs, I am more than willing to take advantage of some type of exhaustion at that level. Otherwise, we could break out to the upside and then go to the $3.00 level above, which is even more resistant.

I believe that natural gas will continue to remain suppressed overall, especially during the summer months in the United States, as it will drive down a massive driver of demand. I believe that the market continues to be difficult to buy, and only the altar short-term type of traitor would look to go long. The average natural gas traitor is probably going to keep short-term positions on at best. I don’t have any interest in trying to hang on to this market longer term, and I believe that eventually we will probably have longer-term forces come back into the market to the downside. With the oversupply of natural gas being a systemic problem, rallies will eventually offer opportunity.

NATGAS Video 19.04.18

This article was originally posted on FX Empire

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