A Short-Term Pullback Seems LikelyLooking at the chart, it feels like natural gas is in an overhyped zone, pushing up against strong resistance around 3.71-3.75. We’re already seeing signs of rejection at this level, which could mean a correction is coming soon.
Short Opportunity?
If the price fails to break above 3.75, a short trade with a target around 3.60-3.50 could be a solid play.
A stop-loss just above 3.78-3.80 would help avoid getting caught in a fake breakout.
Long Opportunity?
If we get a dip to 3.50-3.55 and it holds, that could be a great spot to go long, especially with summer demand picking up later in the year.
Risk Factor?
If the price breaks above 3.80, we could see a much bigger rally toward 4.00+, so shorting above that level becomes risky.
How I’d Trade This:
Aggressive approach: Short from 3.71-3.75, aiming for a drop to 3.60-3.50.
Safer approach: Wait for a dip to 3.50-3.55, then look for a long entry if price stabilizes.
Right now, a correction looks very likely, but patience is key. Let’s see if the market confirms it in the next few sessions.
