Natural Gas Markets Quiet During Holiday

Natural gas markets have gapped a little bit higher during the open on Monday, but then pulled back to fill a bit of a gap. All things been equal, the hammer from the Friday session shows signs of support as well, and therefore I think you need to pay close attention to it. This is especially true considering that it bounced from the 200 day EMA. That being said, a lot of traders are paying close attention to the cold weather in the northeastern part of the United States, which of course is going to be a bit of a drain on supply. However, you can also make an argument that it has already been priced in, and therefore it is not a huge issue at this point.

NATGAS Video 18.01.22

It does look like we could get a little bit of a bounce here, but that bounce is something that I am more than willing to sell into, at the first signs of exhaustion. All things being equal, this is a market that I think will eventually break down significantly due to the fact that there has been an oversupply of natural gas for some time, and of course the latest catalyst for gas to get more expensive is temporary at best. With this being the case, rallies are selling opportunities, and I will jump all over this market at the first signs of weakness after a rally. On the other hand, if we break down below the candlestick on Friday, I would be a seller there as well. I have absolutely no interest whatsoever in trying to buy natural gas.

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