Natural gas markets have gone back and forth during the course of the trading session on Monday, as we have seen the $3.00 level hold again, as it obviously catches a lot of interest. We have seen a lot of selling pressure just above previously, so the technical analysis suggests that we are still very much in a consolidation area. Furthermore, there is a massive gap underneath that has yet to be filled so I do think that it is only a matter of time before that happens. In other words, we probably have a pretty significant pullback coming down the road, but right now commodities are acting based upon the idea of reopening demand, something that will be falling anyway, due to the fact that temperatures will be warmer.
NATGAS Video 04.05.21
It has been a very cool spring, so that have thrown a bit of a monkey wrench into the cyclical trade. However, by the time we get a summer there will be demand for natural gas when it comes to cooling homes, but one has to wonder whether or not the demand will pick up in the commercial situation, as a lot of office buildings are sitting empty. Nonetheless, the cyclical trade typically works for a move to the downside, and that would just simply be a continuation of the range that we are in. If we break down below the $2.50 level, then we have the possibility of going all the way down to the $2.00 level underneath. I have no interest in buying this market at this time of the year, so on simply looking for an exhaustive candle that I can sell.
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