Natural gas markets have been more volatile as of late and have surged quite nicely over the last several trading sessions. This seems to be the pattern though, as we continue to bounce around between the $2.60 level in the $3.00 level above. Remember though, I have been talking about the resistance “zone” above, that extends to the $3.10 level. It is because of this that I think we will get a sell signal eventually, but you might want to look for a little bit of confirmation before jumping in on the short side. You might find yourself a bit early, which is fine if you are willing to take the risk, but psychologically it can be difficult.
I think that short-term pullbacks will continue to find buyers underneath, with the $2.87 level being the initial support level, and then extending down to the $2.83 level. I do believe that the market is wanting to test the resistance area above, so don’t have any interest in shorting until we were to break down below the $2.83 level, something that looks a little unlikely at this point.
We have recently seen more natural gas demand in America with the hot temperatures, and of course Europe has been sweltering, driving up demand for energy to cool off its citizens. However, these are short-term factors, and therefore I think it’s only a matter of time before we returned to the norm, which is simply going back and forth in a larger rage