Natural gas markets have done very little during the week, which isn’t a huge surprise considering that the holidays will take up more effort and energy from traders than putting money door. At this point, the market is likely to bounce from here, but I wouldn’t hang on to it significantly. Ultimately, this is a market that is going to continue to suffer though, but one thing I would point out is that we have had a couple of bullish weekly inventory numbers in a row. Ultimately, this is a marketplace that will continue to see a lot of negativity longer-term, but a bounce is probably do. I think that the $2.85 level is massive resistance, and I think that’s probably about as far as we can bounce. Longer-term traders still do better on shorting this market, but it is difficult to get into a position for a huge move as we are so oversold. Eventually, drillers will stop trying to drill gas, as it is simply far too cheap and then we will get a significant move.
NATGAS Video 30.12.19
Any signs of exhaustion to the upside will be sold into, and at this point I think it will be very difficult for this market to recover from the horrible situation it has found itself in. Quite frankly, they can’t give natural gas away and we continue to find more and more over the longer term. At this point, it’s probably more or less going to be a short-term traders type of situation.
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This article was originally posted on FX Empire
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