Natural gas markets have again struggled at the $3.00 level, an area that you would think would have to have a lot of options attached to it and therefore big positions. While the temperatures in the United States have been cooler than anticipated, the reality is that sooner or later the oversupply of natural gas comes back into the picture. There has been foreign demand for liquefied natural gas, but at the end of the day there is more than enough natural gas in the United States to cover all bases.
NATGAS Video 06.05.21
Because of this, I am looking for a selling opportunity and it certainly looks as if we are trying to build one in this area. We have had a couple of exhaustive candlesticks, so quite frankly it is not a real stretch to imagine that we may fall to reach down towards the previous Which is all the way down near the $2.70 level. In other words, I think we have quite a way to go to the downside given enough time and therefore I think we are looking at a situation that is much easier to sell than by, and quite frankly during this time of year I have no interest in trying to buy natural gas as temperatures will certainly begin to warm up again, and that allows for the idea of cheaper pricing. To the downside, the market very well could try to reach towards the $2.40 level by the end of summer, perhaps even as low as the $2.00 level. There seems to be a massive amount of resistance just above.
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