Natural Gas Midday Technical Analysis November 2
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.
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