The natural gas market continues to show real weakness as the Friday session simply couldn’t gain any traction. The $2.40 level sits just below, and we feel that the area could continue to offer support, but it should give way eventually. The trend is strong, and there is absolutely nothing out there that would have us believe it is about to change.
The supply simply outweighs any demand that is out there, and the winter is about to turn over in the United States. In 6 weeks, demand will plummet in the largest population centers, and as a result – the price of this market should continue downward. We like selling rallies and new lows. The market looks like it is seeing resistance at every 20 cents, so a weak candle at $2.60, $2.80, and $3 has us interested in selling yet again.