The natural gas markets did in fact have a fairly positive day on Monday, breaking above the top of the hammer from the Friday session which of course found support at the $3.80 level. This is a market that has been going sideways for some time now, with a slightly upward bias at this moment. Because of this, I feel that we will continue to bounce around, but at the end of the day I feel that the market is trying to form some type of base. It’s probably based upon seasonal pressures, as we are starting to head towards the fall season in the United States, the biggest consumer of natural gas.
On the other hand, the natural gas supply in the United States is ridiculously overflowing. In fact, the Americans find natural gas deposits on an almost daily basis, and as a result I feel that the natural gas markets will always have a little bit of a negative bias to them overall. Yes, we might get a little bit of a seasonal boost here, but I think ultimately that will just give us higher levels to sell from in the end.
I see $4.10 as extraordinarily important.
I believe that the $4.10 level continues to be very important, and as a result it is not until we get over there that I am convinced about buying this market for any real length of time. I believe that somewhere between here and there, and more than likely focus somewhere near the $4.00 level, we could have enough selling pressure in order to sell this market again. That being said, the natural gas futures market can be a bit tricky and a certainly very expensive.
One of the best ways to trade this market is either in the binary options market, or the CFD markets if you have the ability. I have been trading this contract for some time now using binary options. I feel that’s probably the safest way to go overall if you have that ability, especially considering that this is a nice range bound move. Range bound moves tend to do very well in binary options markets.
