I think the market will probably give us a nice shorting opportunity given enough time, and I will be looking for signs of exhaustion to start selling yet again, as I typically do this time of year. I have no interest in buying natural gas at the moment, as it can roll over rather quickly.
Below the $3 level opens up a potential move to the 50-day EMA, possibly even the $2.60 level. To the upside, the 200-day EMA offers a significant barrier in the form of $3.29.
This market right now, I think, continues to be important, and really, with the oversupply that we see in the United States, it is very difficult for natural gas to have a longer-term move to the upside. If it rallies from here, that is great, I will just sell it at a slightly higher level. I am looking for signs of exhaustion; haven’t really had any follow-through on that yet, but the next couple of days probably will give us that opportunity. Just being patient will more likely than not end up being the biggest hurdle to being profitable in this market at the moment.