Ultimately, I do think this is a market that is probably going to have to see some type of heatwave in the United States to send prices higher, because we have recently found that the Qatar production is already at 80%, so that no longer becomes a thing.
With this being the case, I look at this as a market that, if we do rally based on a heatwave, it’ll be short-term. I don’t want to chase that rally; I want to fade that rally this time of year on signs of exhaustion. We’ll just have to wait and see how that plays out, but that’s the plan so far.
Navigating the Summer Range
And really, at this point in time, unless you’re a short-term back-and-forth range-bound trader, there probably isn’t a whole lot to do here. I’m more of a swing trader, so I have to be patient and wait for a sign that the markets will jump, but right now scalping is probably the best we can do.
I only take 1 or 2 trades during the summer myself, because I tend to go for bigger moves. If you’re an intraday trader, then you have a clear barrier above at about $3.40 and a barrier below at about $3.05 from which to trade.