Natural gas markets had a very quiet session on Monday as traders continue to grapple with the idea of sub-$3 trading. The level is acting as support, but the reality is that the trend is down, and the situation in natural gas inventories isn’t changing all that much. Because of this we feel the downtrend will continue, and that selling is the only way to trade this market.
We look at all bounces as opportunities to sell, and would also sell the daily close below the $3 mark. The market cannot be bought at all, as the supply of natural gas in the United States is far too strong for the demand to ever deplete in any credible manner.