But they must have forgotten that this is the natural gas market, where professionals sell or short rallies because of the abundance of supply and consistent high production.
The new short-term range is $2.978 to $3.396. Its 50% level at $3.187 is the next downside target. The new long-term range is $2.893 to $3.396 with a mid-point at $3.145.
The main trend is up according to the daily swing chart, but a confirmed reversal top will flip the momentum back to the downside. At this time, we’re still in buy the dip mode because of the uptrend. Buyers will be looking for value and that area is the support cluster formed by the long-term 50% level at $3.145 and the 50-day moving average at $3.140. The main trend will change to down if $2.978 fails as support.
On the upside, a clean breakout over $3.396 will signal a resumption of the uptrend. If this move can gain traction then buyers are likely to set their sights on the 200-day moving average at $3.630 and the long-term 50% level at $3.642. But we’re not likely to get there unless demand picks up due to a hot weather spell.
Comfortable Temps, No Power Burn
Rain and thunderstorms through June 4. Highs in the 60s and 70s across most of the country. A few spots in the 80s. Isolated 90s that do not cover enough square miles to matter. Air conditioning demand is not there.
The biggest metro areas in the country are running comfortable and nobody is cranking up the AC. Power burn has nothing to work with. Gas demand from the utility side is dead. The models past two weeks keep teasing heat but this market has been burned on extended forecasts before. Nobody is buying a weather rally they cannot confirm inside 10 days. Until then the shorts have the better hand.
