We are in shoulder season, meaning that the demand is not good and therefore any time this market rallies I look to sell it. I did that just a couple of days ago, probably not looking for much here. This is a very quiet time of the year to say the least.
Market Outlook and Resistance Levels
Natural gas, quite frankly, is a market that only has 2 short active times of the year, generally speaking, but right now, what I look for is signs of exhaustion after short-term rallies to take advantage of the fact that it is so bearish.
The $2.55 level I think is the target again and even if we did break above the $3 level, I think the 200-day EMA near the $3.30 level would be an even deeper amount of selling pressure. This will continue to be an area that we will have to watch closely.
Honestly, I don’t think we can get there without some type of external pressure coming into the market that extends beyond anything remotely normal. I know there is a war in the Middle East, and it doesn’t matter. This is a US contract, so you need to pay attention to US demand.