December Natural Gas is currently in a down trend. It is trading at 306.8 as of this writing. A closing price under our support number of 298.0 is bearish, and may trigger selloffs back near the 280.0 level. In the event of a close above 320.00, then a move to 340.00 is entirely possible. Momentum indicators (RSI, MACD, and Stoch) all point to a lower move if the support is broken. Some caution is warranted, because prices are approaching over-sold conditions. A divergence between price and the indicators will signal a change in directional bias from traders.
Slightly above average temperatures across the continental United States are tempering the demand for heating usage, and a slightly higher than expected build in this week’s storage also will keep pressure on the near-term pricing. Cautious exposure to the down side is still recommended. Call me for details and trade ideas at 888-874-8110.
Series 3 Licensed
Senior Market Strategist
Jeff attended Illinois State University. In 1993 Jeff began his financial career in the stock market as a retail broker. He transitioned to futures in 1999 with LFG Intermarket Group, which became ZAP Futures. In 2004 ZAP Futures was acquired by RJO Futures' parent company R.J. O'Brien. Jeff's focus is to assist clients in managing risk and speculate through futures and options strategies.