Natural gas - liquidity grab at 2.12 - 2.18There are many factors why natural gas is going down:
*Hedge funds and large speculators are still net short
*Retail traders and non-commercials are net long and still not wiped out yet (CBOE and FXCM proprietary data)
*Seasonal variation (warmer than usual summer in northern hemisphere = less demand for natural gas)
*Liquidity still available at 2.12 - 2.18 levels - significant POI including the previous quarterly VWAP (pqVWAP) at this level
*Loosening of sanctions against Russia = more supply of natural gas
The bounce at 2.12 - 2.18 may only small before further downside/sideways price action. Best to leave this trade alone until the dust settles and new support forms on the lower timeframes.