A rejection of the former resistance will neutralize the market, as March natural gas with another close above 3.410. We may see sideways movement if this happens. To start another leg down a close in the 3.250 area is needed. Technicals still favor the Bull camp, however, caution is recommended adding to long positions. Momentum oscillators are at mid level and trending higher.
Above-average temperatures in the coming week are limiting gains, but a weak Dollar is contributing to the strength in the natural gas market over the short term. Cautious bullish plays are advised, watch out for falling temps early next week and a larger than anticipated draw in storage later this week start another run for the 3.500 -3.600 range.
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.