This is a market that’s been consolidating with a rounded bottom for a while, and I am long in the market right now, but I am in an ETF. So, while it has moved quite nicely as of late, my gains are somewhat modest. But it’s a longer term position for me, and I’m waiting until we get to about $2.50 to take profit.

We’re at such a historically low level, going back in the longer term charts, that it does make a certain amount of sense that we get a relief rally sooner or later, if for no other reason, then it gets cold again. Because of that, I’m not levered, and I think leverage is something that’s horrible in natural gas markets to begin with.

Looking at the technical analysis, the 20 day EMA is ready to break above the 50 day EMA, and that would be a bullish sign. But we still have the 200 day EMA right around the $2.35 level. In general, a pullback probably offers buying opportunities at the first sign of a bounce, but again, you have to be very cautious with your position sizing.

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