I believe that rallies are still to be sold, as the $5.00 level should be massive resistance. If we can break above there, then I think the market would take off to the upside very violently, but I think it’s very unlikely to happen.
The markets showing signs of exhaustion on shorter-term charts should be your clue to start shorting, perhaps aiming for the $4.10 level again. If we break down below the $4.10 level, then I think the season bullish pressure will have rolled over and we could continue to go lower.
In general, I believe that natural gas markets have essentially topped out for the year, so I do favor the downside but I recognize that there is a lot of noise to be had between now and then.
Sell signs of exhaustion but buying is going to be very difficult. I believe that as the futures markets roll over into the Spring contracts, we will start to see this thing unwind. – Neal Bhai Reports
