Natural Gas rallies during strong Friday session

Natural gas markets pulled back slightly during the trading session on Friday initially, but found the $2.66 level supportive enough to turn things around and form a bit of a “W pattern” on the hourly chart. However, we are still well within consolidation, and I think that it is only a matter of time before the sellers would step back in. The $2.80 level has been massively resistive in the past, and I think that will continue to be the case. I think that the market should continue to find sellers every time it rallies, and that’s how I have been looking at this market for months. I suspect that the $2.60 level underneath is massive support, and it will take a significant break down to finally get below there. I think that the best way to play this market is selling signs of exhaustion.

The volatility continues to be a major factor in this market, so if you are able to deal with this type of back-and-forth trading, natural gas markets in the futures arena could be the best opportunity for making profits. I think that paying attention to the strict boundaries that we find ourselves in is probably going to continue to pay dividends for the nimble trader, and therefore I think that we will continue to see short-term traders flock to this market. If we do break out of this range, then you can kind of reset and look for better opportunities.

NATGAS Video 23.04.18