It is a well-known technical analysis moving average after all, so the fact that it’s flat suggests that we just really don’t have anywhere to be quite yet.
Range-Bound Trading Channels to Define Summer Action
Overall, this is a market that I think probably trades between the $3 level on the bottom and the $3.50 level on the top. In other words, we don’t really have anywhere to be quite yet. The market will occasionally see the heat pick up and perhaps send the price higher, but I think that would be short-term spikes that we could look to start selling.
I have no interest in buying natural gas this time of year, but I recognize that if you are a short-term trader, you may be able to take advantage of the range going in both directions as long as it holds. It’s a perfectly reasonable strategy if you choose to trade natural gas. At least until we break out, right now, though I just don’t see the catalyst. I think we continue the same pattern.