Natural Gas Midday Technical Analysis November 2

Updated : Nov 2, 2018, 20:16 UTC1min read
Natural gas markets got hit hard during the trading session on Friday after the jobs number came out, testing the $3.20 level. That is an area that has been supportive in the January contract, which is now the front contract, and we have bounced nicely from there. This only shows
Most Popular

Natural gas markets continue to be very jittery, and that makes a lot of sense considering that we are not sure whether this is going to be a warmer than anticipated winter. Beyond that, I think that the market also has a bit of seasonality support built in, so it’s going to be an interesting and choppy marketplace. I believe that rallies are to be sold, but I’m not necessarily looking to short this market on a further drop, only because I think that there will always be somebody willing to buy this market this time of year.

NATGAS Midday Video 02.11.18

I believe the $3.40 level is a massive ceiling that we will not break, so I’m looking to short this market every five cents, perhaps 10. If we do break down below the $3.20 level, the next major support level is at the $3.15 level, and then the $3.10 level. I like fading rallies, which continue to give us plenty of opportunity. However, a major meltdown is not what I’m expecting, just rather a gentle grind lower over the longer-term. The volatility will continue to be an issue, but something that you should be well aware of it this point. If you are patient, you could see a bounce occasionally that you can fade on signs of exhaustion, which continues to appear time and time again. I don’t have any interest in buying natural gas at these high levels, regardless of the time of year.

Advertisement
Know where Natural Gas is headed? Take advantage now with

Your capital is at risk

Don't miss a thing! Sign up for a daily update delivered to your inbox

Latest Articles

See All